Summary

A malicious user can exploit the batch execution mode in the execute function to bypass access control and perform unauthorized actions, such as upgrading the contract to a malicious implementation.

Vulnerability Details

• Function: execute

• Location: Nexus contract

• Issue: The execute function processes batch transactions without sufficiently isolating or validating each transaction's intent. A malicious user can include a call to upgradeToAndCall within a batch, bypassing the onlyEntryPointOrSelf modifier and changing the contract's implementation to a malicious contract.

Scenario:

1. Access via Entry Point: The malicious user gains access through the entry point.

2. Craft Malicious Operation: The user operation includes a batch of transactions, one of which calls upgradeToAndCall.

3. Submit and Validate: The entry point validates and submits the operation.

4. Batch Execution: The execute function processes the batch, including the unauthorized call to upgradeToAndCall.

5. Implementation Change: The contract's implementation is changed to a malicious one.

6. Control: The malicious user gains control over the contract via the new implementation.

7. Unauthorized Actions: The malicious implementation can perform unauthorized actions, such as transferring funds, modifying state, or installing further malicious modules.

Impact

• Security Breach: The malicious implementation can perform unauthorized actions, such as draining funds, modifying state, or installing further malicious modules.

• Loss of Trust: Users may lose trust in the contract due to potential security vulnerabilities.

• Compliance Issues: Violates the intended security model and access control mechanisms.

Tools Used

• Manual Code Review: Analyzed the execute function to identify potential bypasses of access control.

• Scenario Simulation: Simulated the batch execution scenario to confirm the exploit.

Recommendations

Isolate Critical Functions:

• Ensure that critical functions like upgradeToAndCall cannot be called within a batch execution context.

• Implement additional checks to prevent unauthorized calls to critical functions.