Unleash Protocol Suffers $3.9M Crypto Loss After Unauthorized Smart Contract Upgrade

Decentralized intellectual property platform Unleash Protocol has reported a loss of approximately $3.9 million in digital assets following an unauthorized upgrade to its smart contracts that enabled illicit withdrawals.

The Unleash team stated that the attacker managed to gain sufficient signing authority to function as an administrator within the project’s multisig governance framework.

“Our initial investigation indicates that an externally owned address gained administrative control via Unleash’s multisig governance and carried out an unauthorized contract upgrade,” the company says in a public announcement.

“This upgrade enabled asset withdrawals that were not approved by the Unleash team and occurred outside our intended governance and operational procedures.”

Unleash Protocol positions itself as a blockchain-based operating system for intellectual property management, transforming IP into tokenized on-chain assets. These assets can be used within decentralized finance (DeFi) applications, while smart contracts automate licensing, monetization, and royalty distribution among predefined stakeholders.

By exploiting the unauthorized co

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