GHSA-6447-269v-g68m Mezo: ERC-20 bridgeOut burn can be erased by a stale StateDB overwrite leading to full L1 bridge drain

Note: the fixed version of the validator client has been deployed for some time.

Impact

Potential full drain of L1 bridge without changing bridged balance on Mezo.

Brief/Intro

A malicious user can steal all ERC-20 tokens locked in the L1 bridge by repeatedly calling the bridgeOut precompile from a crafted contract. The precompile's ERC-20 burn executes in an inner StateDB that commits to a cache context, but the outer StateDB still holds stale pre-burn storage slots in its dirtyStorage. When the outer transaction commits, it overwrites the inner burn with stale values – restoring the attacker's balance and allowance while the AssetsUnlocked event has already been persisted to the bridge store. The Ethereum sidecar observes this event and attests the unlock on L1, releasing real tokens to the attacker. The attacker keeps their Mezo balance intact and can repeat the drain every block.

Vulnerability Details

Mezo's EVM uses a dual-context state architecture for precompile calls. When a precompile is invoked, Contract.Run() calls stateDB.CacheContext() which creates a cachedCtx branched from the base ctx. Cosmos-side state changes (like ERC-20 burns) happen on cachedCtx, while standard EVM storage operations (SLOAD/SSTORE) operate on the outer StateDB's dirtyStorage backed by baseCtx.

The bridgeOut precompile handles two token types with fundamentally different mechanisms:

• BTC (burnBitcoin): Burns via x/bank (Cosmos native), then explicitly records a journal.SubBalance entry. syncJournalEntries() propagates this to the outer StateDB, keeping both contexts in sync.
• ERC-20 (burnERC20): Burns via ExecuteContractCall, which creates an entirely new inner StateDB operating on cachedCtx. This inner StateDB executes burnFrom (decreasing balance, supply, and allowance slots), commits its changes to cachedCtx, and is discarded. No journal entry is created. The outer StateDB is never informed of these storage changes.

This creates a critical asymmetry. After burnERC20 returns, the outer StateDB's dirtyStorage still contains the pre-burn allowance (written by approve earlier in the same transaction), and has never loaded the balance or supply slots. When the attacker triggers a subsequent transfer(sink, 1) in the same transaction, the outer StateDB performs a GetCommittedState on the balance slot. This reads from baseCtx – which holds the stale pre-burn value because cachedCtx changes haven't been flushed to baseCtx yet. The stale balance minus 1 is written to dirtyStorage.

At end-of-transaction, StateDB.Commit() executes in this order:

func (s *StateDB) Commit() error {
    if s.flushCache != nil {
        s.flushCache()    // Step 1: flush cachedCtx → baseCtx (inner burn lands)
    }
    return s.commit(s.ctx) // Step 2: write dirtyStorage → baseCtx (stale values overwrite)
}

Step 1 flushes the inner burn into baseCtx. Step 2 then iterates every slot in dirtyStorage and calls keeper.SetState on baseCtx – unconditionally, without comparing against current values:

func (s *StateDB) commit(ctx sdk.Context) error {
    for _, addr := range s.journal.sortedDirties() {
        obj := s.stateObjects[addr]
        // ...
        for _, key := range obj.dirtyStorage.SortedKeys() {
            s.keeper.SetState(ctx, obj.Address(), key, obj.dirtyStorage[key].Bytes())
        }
    }
    return nil
}

The stale allowance slot in dirtyStorage (from the approve before bridgeOut) overwrites the zeroed-out allowance that the inner burn wrote. The stale balance slot (from the transfer after bridgeOut) overwrites the zeroed-out balance. The burn is erased.

Meanwhile, SaveAssetsUnlocked was called on cachedCtx during the precompile execution, persisting the AssetsUnlockedEvent to the bridge module's KV store. This event is flushed to baseCtx at Step 1 and survives Step 2 (different KV store prefix, not touched by dirtyStorage). The Ethereum sidecar observes this event and calls AttestBridgeOut on the L1 MezoBridge contract, releasing real tokens to the attacker's L1 address.

The attack is repeatable per-block. Each execution costs only 1 wei (the transfer trigger) while draining the full bridgeOut amount from L1. There is no supply assertion for ERC-20 tokens (only abtc is checked in verifyBTCSupply), so no end-of-block invariant catches the mismatch.

Impact Details

CRITICAL - Using a fixed balance of e.g., 10,000 USDC on mezo an attacker can completly drain the USDC balance on ETH mainnet bridge via repeated exploit transactions on mezo.

The Mezo bridge on L1 (0xF6680EA3b480cA2b72D96ea13cCAF2cFd8e6908c) holds approximatively ~1,753,958.4 USD worth of assets that can be stolen, taking into account offramp limit safeguard. Below are the details of asset that can be drained:

• cbBTC (mcbBTC: 0x6a7CD8E1384d49f502b4A4CE9aC9eb320835c5d7):

limit: 900000000 (9 cbBTC) decimals: 8 L1 bridge balance: 25.01605546 cbBTC VALUE AT RISK: (9 cbBTC) 633,190.53 USD

• T (mT: 0xaaC423eDC4E3ee9ef81517e8093d52737165b71F):

limit: 60000000000000000000000000 (60,000,000 T) decimals: 18 L1 bridge balance: 426,294,138.843419368493748432 T VALUE AT RISK: (60,000,000 T) 397,537.57 USD AT RISK

• USDC (mUSDC: 0x04671C72Aab5AC02A03c1098314b1BB6B560c197):

limit: 10000000000000 (10,000,000 USDC) decimals: 6 L1 bridge balance: 508,549.393027 USDC VALUE AT RISK: 508,549.39 USDC AT RISK

• USDT (mUSDT: 0xeB5a5d39dE4Ea42C2Aa6A57EcA2894376683bB8E):

limit: 10000000000000 (10,000,000 USDT) decimals: 6 L1 bridge balance: 85,247.963024 USDT VALUE AT RISK: 85,247.96 USDT

• xSolvBTC (mxSolvBTC: 0xdF708431162Ba247dDaE362D2c919e0fbAfcf9DE)

limit: 90000000000000000000 (90 xSolvBTC) decimals: 18 L1 bridge balance: 1.103740676354553591 xSolvBTC VALUE AT RISK: 1.10374068 xSolvBTC (76,765.16 USD)

• SolvBTC (msolvBTC: 0xa10aD2570ea7b93d19fDae6Bd7189fF4929Bc747)

limit 90000000000000000000 (90 solvBTC) decimals: 18 L1 bridge balance: 0.496396263084933802 SolvBTC VALUE AT RISK: 0.49639626 solvBTC (34,920.48 USD)

• FunctionBTC (mFBTC: 0x812fcC0Bb8C207Fd8D6165a7a1173037F43B2dB8)

limit: 900000000 (9 FBTC) decimals: 8 L1 bridge balance: 0.18064148 FBTC VALUE AT RISK: 0.18064148 FBTC (12,741.73 USD)

• USDe (mUSDe: 0xdf6542260a9F768f07030E4895083F804241F4C4)

limit: 1000000000000000000000000 (1,000,000.00 USDe) decimals: 18 L1 bridge balance: 4,123.909662607937020208 USDe VALUE AT RISK: 4,123.20 USDe

• swBTC (mswBTC: 0x29fA8F46CBB9562b87773c8f50a7F9F27178261c)

limit: 900000000 (9 swBTC) decimals: 8 L1 bridge balance: 0.02709065 swBTC VALUE AT RISK: 0.02709065 (2,904.74 USD)

• DAI (mDAI: 0x1531b6e3d51BF80f634957dF81A990B92dA4b154)

limit: 1000000000000000000000000 (1,000,000.00 DAI) decimals: 18 L1 bridge balance: 882.421484670245389691 DAI VALUE AT RISK: 882.38 DAI

Total assets currently at risk taking into consideration limits per ERC20 token and available drainable balance on the bridge: 1,753,958.4 USD of assets on L1.

References

• x/evm/statedb/statedb.go:677-684 – Commit() flushes cache context then writes dirtyStorage, allowing stale outer slots to overwrite inner burn results. -> https://github.com/mezo-org/mezod/blob/17af5fdf29a6884d52e5ba6a1ee788c1f6e2a5ab/x/evm/statedb/statedb.go#L677-L684
• x/evm/statedb/statedb.go:655-674 – commit() writes every dirtyStorage entry to the KV store unconditionally, without checking if the value has been superseded by the inner context flush. -> https://github.com/mezo-org/mezod/blob/17af5fdf29a6884d52e5ba6a1ee788c1f6e2a5ab/x/evm/statedb/statedb.go#L655-L674
• x/evm/statedb/state_object.go:236-244 – GetCommittedState() reads from s.db.ctx (the base context), returning stale pre-burn values for slots not yet flushed from cachedCtx. -> https://github.com/mezo-org/mezod/blob/17af5fdf29a6884d52e5ba6a1ee788c1f6e2a5ab/x/evm/statedb/state_object.