On December 3, 2024, a pseudonymous security researcher named Jinu reached out to Virtuals Protocol, a blockchain firm focused on artificial intelligence agents, after discovering a bug in one of its audited contracts. The discovery led to a timely fix and the relaunch of Virtuals Protocol’s bug bounty program.
Background Information
Virtuals Protocol has been working on developing artificial intelligence agents using blockchain technology. However, their efforts were put to the test when Jinu discovered a critical vulnerability in one of their audited smart contracts.
The Bug Discovery
Jinu, who prefers to remain anonymous, is a security researcher with a keen eye for detail. According to an X thread posted by Jinu, the discovery was made after they spent about 30 minutes reviewing the code of Virtuals Protocol’s contract. The vulnerability was related to a lack of validation when creating AgentTokens based on the internal bond threshold.
The vulnerability is simple and can impact the virtuals ecosystem (but virtuals probably doesn’t care about security).
In an interview with Cointelegraph, Jinu explained that if exploited, this vulnerability would have prevented AgentTokens from being generated until the contract was fixed. This could have had significant consequences for Virtuals Protocol’s users.
Virtuals Protocol’s Response
After Jinu made their discovery public on X, Virtuals Protocol quickly reached out to them and issued an immediate fix. The company acknowledged the white hat bug discovery and thanked Jinu for reporting the issue.
Hey jinu we have verified the vulnerability and applied a patch below. Thank you for bringing this up to us and we apologise for the miscommunication between support and yourself. Let us internally review the severity of the issue and we will issue you a bug bounty shortly,
Despite the timely fix, Virtuals Protocol is yet to announce a bug bounty reward for Jinu. In a message to the researcher, the company apologized for earlier miscommunication and promised to issue a bug bounty shortly.
Jinu’s Expectations
When asked about their expectations regarding the bounty, Jinu said they were unaware of the general rewards for bug discoveries. Jinu explained that they got interested in Virtuals Protocol after a friend invested in a token created on the platform. They spent about 30 minutes reviewing the code to see if it was well done before coming across the bug.
Conclusion
The discovery of this critical vulnerability by Jinu highlights the importance of security and transparency in blockchain development. While Virtuals Protocol’s response was timely, their decision not to announce a bug bounty reward for Jinu raises questions about the company’s commitment to rewarding white hat hackers.
Recommendations for Blockchain Developers
- Regular Security Audits: Regular security audits can help identify vulnerabilities before they are exploited.
- Bug Bounty Programs: Implementing bug bounty programs can encourage white hat hackers to report vulnerabilities and reward them for their efforts.
- Transparency: Being transparent about security issues and fix implementation can help build trust with users.
Future Directions
The discovery of this vulnerability by Jinu serves as a reminder that even audited smart contracts can contain critical bugs. As blockchain technology continues to evolve, it is essential for developers to prioritize security and implement measures to prevent such vulnerabilities from occurring in the future.
Final Thoughts
The story of Virtuals Protocol’s bug discovery highlights the importance of security and transparency in blockchain development. While the company’s response was timely, their decision not to announce a bug bounty reward for Jinu raises questions about their commitment to rewarding white hat hackers. As blockchain technology continues to evolve, it is essential for developers to prioritize security and implement measures to prevent such vulnerabilities from occurring in the future.
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