Horizon Alert
Summary of the vulnerability and why it matters
This vulnerability in a blockchain protocol implementation could allow unauthorized currency creation or corruption of token supply integrity by manipulating marketplace settlement. It affects backend protocol layers and requires a low level of access to exploit, with potential for significant impact on the digital asset ecosystem.
- Blockchain currency and supply integrity are at risk.
- Leadership should remember potential for unbacked currency.
- Confirm relevance and exposure within your blockchain operations.
Attack Path
How an attacker could exploit the issue
An attacker with some access could manipulate marketplace settlements to create unbacked currency and corrupt token supply. This is achieved by creating a listing with a specific referral percentage, then updating the asset's royalty percentage to exceed the bid. When a purchase occurs, the system unconditionally pays out both percentages, potentially crediting the buyer with more currency than they paid.
- Requires authenticated access to list assets.
- Triggered during marketplace purchase settlement.
- Results in unbacked currency and supply corruption.
Live Threat
Current exploitation, exposure, and threat context
This vulnerability could allow for the creation of unbacked currency and corruption of the token supply within the Klever blockchain protocol. This occurs when a malicious actor manipulates referral and royalty percentages during marketplace settlements, leading to a discrepancy where more cryptocurrency is issued than was paid for in a transaction. The conditions for this to happen involve an asset owner who can create a listing and then update royalty settings to exceed the bid amount, with the settlement process then unconditionally paying out excess amounts.
- Token supply integrity.
- Marketplace settlement manipulation.
- Unbacked currency creation.
Operational Fix
Recommended remediation, mitigation, and detection steps
This vulnerability impacts the marketplace settlement logic within the Klever blockchain protocol. The immediate priority is to identify all instances of the affected software, determine their business criticality and network exposure, and confirm the accountable ownership for remediation. Once identified, a risk-based remediation plan should be developed, which may involve coordination with vendors or planning for maintenance windows.
- Ownership: Confirm accountable application or platform owners.
- Verify: Assess exposure and business criticality first.
- Action: Plan and execute targeted remediation.