BlockSec

Securing the DApp Ecosystem

Transaction Virtualization


Analyzing a security incident is never easy, without the clear trace of a transaction.

Launch

AML

Cononial Pipeline Event Analysis (Chinese)

We present a comprehensive analysis report of the colonial pipeline event, visualization of ransom flow and statistics on other information.

Our findings

We have detected and/or analyzed several zero-day DeFi vulnerabilities.

Research

Our team has published multiple papers on blockchain security, DeFi security, confidential computing, trusted hardware in prestigious security conferences.

  • Since its debut, SGX has been used in many applications, e.g., secure data processing. However, previous systems usually assume a trusted enclave and ignore the security issues caused by an untrusted enclave. For instance, a vulnerable (or even malicious) third-party enclave can be exploited to attack the host application and the rest of the system. In this paper, we propose an efficient mechanism to confine an untrusted enclave's behaviors. The threats of an untrusted enclave come from the enclave-host asymmetries. They can be abused to access arbitrary memory regions of its host application, jump to any code location after leaving the enclave and forge the stack register to manipulate the saved context. Our solution breaks such asymmetries and establishes mutual distrust between the host application and the enclave. It leverages Intel MPK for efficient memory isolation and the x86 single-step debugging mechanism to capture the event when an enclave is existing. It then performs the integrity check for the jump target and the stack pointer. We have solved two practical challenges and implemented a prototype system. The evaluation with multiple micro-benchmarks and representative real-world applications demonstrated the efficiency of our system, with less than 4% performance overhead.

  • Non-interactive zero-knowledge proof or argument (NIZK) systems are widely used in many security sensitive applications to enhance computation integrity, privacy and scalability. In such systems, a prover wants to convince one or more verifiers that the result of a public function is correctly computed without revealing the (potential) private input, such as the witness. In this work, we introduce a new notion, called succinct scriptable NIZK, where the prover and verifier(s) can specify the function (or language instance) to be proven via a script. We formalize this notion is UC framework and provide a generic trusted hardware based solution. We then instantiate our solution in both SGX and Trustzone with Lua script engine. The system can be easily used by typical programmers without any cryptographic background. The benchmark result shows that our solution is better than all the known NIZK proof systems w.r.t. prover's running time (1000 times faster), verifier's running time, and the proof size. Finally, we show how the proposed scriptable succinct NIZK can be readily deployed to solve many well-known problems in the blockchain context, e.g. verifier's dilemma, fast joining for new players, etc.

  • The rapid growth of Decentralized Finance (DeFi) boosts the Ethereum ecosystem. At the same time, attacks towards DeFi applications (apps) are increasing. However, to the best of our knowledge, existing smart contract vulnerability detection tools cannot be directly used to detect DeFi attacks. That's because they lack the capability to recover and understand high-level DeFi semantics, e.g., a user trades a token pair X and Y in a Decentralized EXchange (DEX).
    In this work, we focus on the detection of two types of new attacks on DeFi apps, including direct and indirect price manipulation attacks. The former one means that an attacker directly manipulates the token price in DEX by performing an unwanted trade in the same DEX by attacking the vulnerable DeFi app. The latter one means that an attacker indirectly manipulates the token price of the vulnerable DeFi app (e.g., a lending app). To this end, we propose a platform-independent way to recover high-level DeFi semantics by first constructing the cash flow tree from raw Ethereum transactions and then lifting the low-level semantics to high-level ones, including token trade, liquidity mining, and liquidity cancel. Finally, we detect price manipulation attacks using the patterns expressed with the recovered DeFi semantics.
    We have implemented a prototype named DeFiRanger and applied it to more than 350 million transactions. It successfully detected 432 real-world attacks in the wild. We confirm that they belong to four known security incidents and five zero-day ones. We reported our findings. Two CVEs have been assigned. We further performed an attack analysis to reveal the root cause of the vulnerability, the attack footprint, and the impact of the attack. Our work urges the need to secure the DeFi ecosystem.

  • Flash Loan, as an emerging service in the decentralized finance ecosystem, allows users to request a non-collateral loan. While providing convenience, it also enables attackers to launch malicious operations with a large amount of asset that they do not have. Though there exist spot media reports of attacks that leverage Flash Loan, there lacks a comprehensive understanding of existing Flash Loan services.
    In this work, we take the first step to study the Flash Loan service provided by three popular platforms. Specifically, we first illustrate the interactions between Flash Loan providers and users. Then, we design three patterns to identify Flash Loan transactions. Based on the patterns, 76, 303 transactions are determined. The evaluation results show that the Flash Loan services get more popular over time. At last, we present four Flash Loan applications with realworld examples and propose two potential research directions.

  • One reason for the popularity of Bitcoin is due to its anonymity. Although several heuristics have been used to break the anonymity, new approaches are proposed to enhance its anonymity at the same time. One of them is the mixing service. Unfortunately, mixing services have been abused to facilitate criminal activities, e.g., money laundering. As such, there is an urgent need to systematically understand Bitcoin mixing services. In this paper, we take the first step to understand state-of-the-art Bitcoin mixing services. Specifically, we propose a generic abstraction model for mixing services and observe that there are two mixing mechanisms in the wild, i.e. swapping and obfuscating. Based on this model, we conduct a transaction-based analysis and successfully reveal the mixing mechanisms of four representative services. Besides, we propose a method to identify mixing transactions that leverage the obfuscating mechanism. The proposed approach is able to identify over 92% of the mixing transactions. Based on identified transactions, we then estimate the profit of mixing services and provide a case study of tracing the money flow of stolen Bitcoins.

  • The EOSIO blockchain, one of the representative Delegated Proof-of-Stake (DPoS) blockchain platforms, has grown rapidly recently. Meanwhile, a number of vulnerabilities and high-profile attacks against top EOSIO DApps and their smart contracts have also been discovered and observed in the wild, resulting in serious financial damages. Most of the EOSIO smart contracts are not open-sourced and typically compiled to WebAssembly (Wasm) bytecode, thus making it challenging to analyze and detect the presence of possible vulnerabilities. In this paper, we propose EOSAFE, the first static analysis framework that can be used to automatically detect vulnerabilities in EOSIO smart contracts at the bytecode level. Our framework includes a practical symbolic execution engine for Wasm, a customized library emulator for EOSIO smart contracts, and four heuristic-driven detectors to identify the presence of the four most popular vulnerabilities in EOSIO smart contracts. Experiments have shown that EOSAFE achieves promising results in detecting vulnerabilities, with an F1-measure of 98%. We have applied EOSAFE to all active 53,666 smart contracts in the ecosystem (as of November 15, 2019). Our results show that over 25% of the smart contracts are labeled vulnerable. We further analyze possible exploitation attempts on these vulnerable smart contracts and identify 48 in-the-wild attacks (27 of them have been confirmed by DApp developers), which have resulted in financial loss of at least 1.7 million USD.

  • Ponzi schemes are financial scams that lure users under the promise of high profits. With the prosperity of Bitcoin and blockchain technologies, there has been growing anecdotal evidence that this classic fraud has emerged in the blockchain ecosystem. Existing studies have proposed machine-learning based approaches for detecting Ponzi schemes, i.e., either based on the operation codes (opcodes) of the smart contract binaries or the transaction patterns of addresses. However, state-of-the-art approaches face several major limitations, including lacking interpretability and high false positive rates. Moreover, machine-learning based methods are susceptible to evasion techniques, and transaction-based techniques do not work on smart contracts that have a small number of transactions. These limitations render existing methods for detecting Ponzi schemes ineffective. In this paper, we propose SADPonzi, a semantic-aware detection approach for identifying Ponzi schemes in Ethereum smart contracts. Specifically, by strictly following the definition of Ponzi schemes, we propose a heuristic-guided symbolic execution technique to first generate the semantic information for each feasible path in smart contracts and then identify investor-related transfer behaviors and the distribution strategies adopted. Experimental result on a well-labelled benchmark suggests that SADPonzi can achieve 100% precision and recall, outperforming all existing machine-learning based techniques. We further apply SADPonzi to all 3.4 million smart contracts deployed by EOAs in Ethereum and identify 835 Ponzi scheme contracts, with over 17 million US Dollars invested by victims. Our observations confirm the urgency of identifying and mitigating Ponzi schemes in the blockchain ecosystem.

  • The production of counterfeit money has a long history. It refers to the creation of imitation currency that is produced without the legal sanction of government. With the growth of the cryptocurrency ecosystem, there is expanding evidence that counterfeit cryptocurrency has also appeared. In this paper, we empirically explore the presence of counterfeit cryptocurrencies on Ethereum and measure their impact. By analyzing over 190K ERC-20 tokens (or cryptocurrencies) on Ethereum, we have identified 2, 117 counterfeit tokens that target 94 of the 100 most popular cryptocurrencies. We perform an end-to-end characterization of the counterfeit token ecosystem, including their popularity, creators and holders, fraudulent behaviors and advertising channels. Through this, we have identified two types of scams related to counterfeit tokens and devised techniques to identify such scams. We observe that over 7,104 victims were deceived in these scams, and the overall financial loss sums to a minimum of $ 17 million (74,271.7 ETH). Our findings demonstrate the urgency to identify counterfeit cryptocurrencies and mitigate this threat.

  • WebAssemly is an emerging runtime for Web applications and has been supported in almost all browsers. Recently, WebAssembly is further regarded to be a the next-generation environment for blockchain applications, and has been adopted by Ethereum, namely eWASM, to replace the state-of-the-art EVM. However, whether and how well current eWASM outperforms EVM on blockchain clients is still unknown. This paper conducts the first measurement study, to measure the performance on WASM VM and EVM for executing smart contracts on blockchain. To our surprise, the current WASM VM does not perform in expected performance. The overhead introduced by WASM is really non-trivial. Our results highlight the challenges when deploying WASM in practice, and provide insightful implications for improvement space.

  • EOSIO has become one of the most popular blockchain platforms since its mainnet launch in June 2018. In contrast to the traditional PoW-based systems (e.g., Bitcoin and Ethereum), which are limited by low throughput, EOSIO is the first high throughput Delegated Proof of Stake system that has been widely adopted by many decentralized applications. Although EOSIO has millions of accounts and billions of transactions, little is known about its ecosystem, especially related to security and fraud. In this paper, we perform a large-scale measurement study of the EOSIO blockchain and its associated DApps. We gather a large-scale dataset of EOSIO and characterize activities including money transfers, account creation and contract invocation. Using our insights, we then develop techniques to automatically detect bots and fraudulent activity. We discover thousands of bot accounts (over 30% of the accounts in the platform) and a number of real-world attacks (301 attack accounts). By the time of our study, 80 attack accounts we identified have been confirmed by DApp teams, causing 828,824 EOS tokens losses (roughly $2.6 million) in total.

  • In this paper, we present the first large-scale and systematic study to characterize the code reuse practice in the Ethereum smart contract ecosystem. We first performed a detailed similarity comparison study on a dataset of 10 million contracts we had harvested, and then we further conducted a qualitative analysis to characterize the diversity of the ecosystem, understand the correlation between code reuse and vulnerabilities, and detect the plagiarized DApps. Our analysis revealed that over 96% of the contracts had duplicates, while a large number of them were similar, which suggests that the ecosystem is highly homogeneous. Our results also suggested that roughly 9.7% of the similar contract pairs have exactly the same vulnerabilities, which we assume were introduced by code clones. In addition, we identified 41 DApps clusters, involving 73 plagiarized DApps which had caused huge financial loss to the original creators, accounting for 1/3 of the original market volume.

  • We performed the first systematic study of a new attack on Ethereum that steals cryptocurrencies. The attack is due to the unprotected JSON-RPC endpoints existed in Ethereum nodes that could be exploited by attackers to transfer the Ether and ERC20 tokens to attackers-controlled accounts. This study aims to shed light on the attack, including malicious behaviors and profits of attackers. Specifically, we first designed and implemented a honeypot that could capture real attacks in the wild. We then deployed the honeypot and reported results of the collected data in a period of six months. In total, our system captured more than 308 million requests from 1,072 distinct IP addresses. We further grouped attackers into 36 groups with 59 distinct Ethereum accounts. Among them, attackers of 34 groups were stealing the Ether, while other 2 groups were targeting ERC20 tokens. The further behavior analysis showed that attackers were following a three-steps pattern to steal the Ether. Moreover, we observed an interesting type of transaction called zero gas transaction, which has been leveraged by attackers to steal ERC20 tokens. At last, we estimated the overall profits of attackers. To engage the whole community, the dataset of captured attacks is released on https://github.com/zjuicsr/eth-honey.