Core Contracts
Regnum Aurum Acquisition Corp
HardhatReal World AssetsNFT
77,280 USDC
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Submission Details
Severity: high
Valid

`emergencyWithdraw` in `FeeCollector` directly sends token to `Treasury`

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Summary

emergencyWithdraw in FeeCollector directly sends token to treasury, which leads to loss of funds because Treasury can't handle direct transfers. Instead the deposit should be used.

Vulnerability Details

We can see that emergencyWithdraw uses safeTransfer to transfer tokens to the Treasury contract.

function emergencyWithdraw(address token) external override whenPaused {
if (!hasRole(EMERGENCY_ROLE, msg.sender)) revert UnauthorizedCaller();
if (token == address(0)) revert InvalidAddress();
​
uint256 balance;
if (token == address(raacToken)) {
balance = raacToken.balanceOf(address(this));
raacToken.safeTransfer(treasury, balance);
} else {
balance = IERC20(token).balanceOf(address(this));
SafeERC20.safeTransfer(IERC20(token), treasury, balance);
}
​
emit EmergencyWithdrawal(token, balance);
}

If we look at the deposit function in the Treasury contract we can see that it increases _balances state variable.

function deposit(address token, uint256 amount) external override nonReentrant {
if (token == address(0)) revert InvalidAddress();
if (amount == 0) revert InvalidAmount();
IERC20(token).transferFrom(msg.sender, address(this), amount);
_balances[token] += amount;
_totalValue += amount;
emit Deposited(token, amount);
}

When manager tries to withdraw tokens using withdraw function, the call will revert since the tokens were sent directly and _balances state variables was not increased.

function withdraw(
address token,
uint256 amount,
address recipient
) external override nonReentrant onlyRole(MANAGER_ROLE) {
if (token == address(0)) revert InvalidAddress();
if (recipient == address(0)) revert InvalidRecipient();
if (_balances[token] < amount) revert InsufficientBalance();
_balances[token] -= amount;
_totalValue -= amount;
IERC20(token).transfer(recipient, amount);
emit Withdrawn(token, amount, recipient);
}

Impact

Tokens that are sent directly to the Treasury are lost. FeeCollector does that using emergencyWithdraw function.

Tools Used

Manual Review, Hardhat

Recommendations

In emergencyWithdraw use deposit function to send tokens to Treasury.

Updates

Lead Judging Commences

inallhonesty Lead Judge 6 months ago
Submission Judgement Published
Validated
Assigned finding tags:

FeeCollector::_processDistributions and emergencyWithdraw directly transfer funds to Treasury where they get permanently stuck

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