First Flight #16: Mafia Takedown

Summary

USDC is not the stablecoin of choice for the discerning gangster

Vulnerability Details

USDC has both a blacklist of addresses and also is upgradeable, so its behaviour in future is uncertain. Given its owning company is US regulated, anyone found getting on the wrong side of US authorities are likely to be blacklisted from USDC transfers.

Impact

Given the activities of our gangsters have been discovered, there is a high chance Circle will be asked to add all the contracts here to the blacklist, leaving our naive gangsters without access to their funds and stuck with a bunch of worthless CrimeMoney tokens.

Tools Used

Circle website has all the details and is documented in the github link supplied

Recommendations

Choose a different stablecoin, or use native token and open up to a whole host of new exploits.