diff --git a/SecurityAuditJun2025.md b/SecurityAuditJun2025.md new file mode 100644 index 0000000000..db33a2693e --- /dev/null +++ b/SecurityAuditJun2025.md @@ -0,0 +1,362 @@ +# Argochain Security Audit Report + +**Date**: June 16, 2025 +**Auditor**: Pavon Dunbar +**Scope**: Complete Argochain codebase security review +**Severity Levels**: Critical | High | Medium | Low + +## 🚨 Executive Summary + +This security audit of the Argochain blockchain codebase has identified **multiple critical vulnerabilities** that pose significant risks to the network's security and user funds. The audit reveals several issues that could lead to: + +- Unlimited token minting/theft +- Denial of service attacks +- Memory safety violations +- Replay attacks on cross-chain operations + +**⚠️ RECOMMENDATION: This codebase is NOT ready for production deployment and requires immediate security fixes.** + +--- + +## 🔴 Critical Vulnerabilities + +### 1. Signature Verification Vulnerability in Cross-Chain Transfers + +**Severity**: 🔴 **CRITICAL** +**Location**: `frame/pallet-counter/src/lib.rs:179-237` +**CVSS Score**: 9.8 (Critical) + +#### Description +The EVM to Substrate transfer function contains a critical signature verification flaw that allows replay attacks and signature forgery. + +#### Vulnerable Code +```rust +let message = format!("Transfer {} AGC from 0x{:x} to Substrate", amount_u128, evm_address); +let prefix = "\x19Ethereum Signed Message:\n"; +let message_len = format!("{}", message.len()); +let message_to_sign = format!("{}{}{}", prefix, message_len, message); +``` + +#### Vulnerabilities +- **Replay Attack**: No nonce or timestamp in signed message +- **Cross-Chain Replay**: Same signature can be reused across different contexts +- **Weak Message Construction**: Predictable format makes forgery easier +- **Missing Context**: No block hash, chain ID, or recipient validation + +#### Impact +- Attackers can replay signatures to drain EVM balances multiple times +- Cross-chain signature reuse possible +- Potential for unlimited token minting + +#### Recommended Fix +```rust +let message = format!("Transfer {} AGC from 0x{:x} to {} on chain {} at block {} nonce {}", + amount_u128, evm_address, substrate_account, chain_id, block_hash, nonce); +``` + +--- + +### 2. Unsafe Memory Operations + +**Severity**: 🔴 **CRITICAL** +**Location**: `precompiles/src/evm/handle.rs:118` +**CVSS Score**: 8.5 (High) + +#### Description +Unsafe memory transmutation without proper lifetime validation could lead to memory safety violations. + +#### Vulnerable Code +```rust +unsafe { + EVM_CONTEXT::using( + core::mem::transmute::<&'a mut dyn PrecompileHandle, &'static mut dyn PrecompileHandle>( + precompile_handle, + ), + mutator, + ) +} +``` + +#### Impact +- Memory safety violations +- Potential use-after-free vulnerabilities +- Runtime crashes or undefined behavior + +#### Recommended Fix +- Implement proper lifetime management +- Use safer alternatives to `transmute` +- Add comprehensive lifetime annotations + +--- + +### 3. Panic-Based DoS Vectors + +**Severity**: 🔴 **CRITICAL** +**Location**: `frame/evm/precompile/modexp/src/lib.rs` (multiple lines) +**CVSS Score**: 7.5 (High) + +#### Description +Multiple panic calls in precompile code can be triggered by attackers to crash the runtime. + +#### Vulnerable Code +```rust +panic!("Modexp::execute() returned error"); // TODO: how to pass error on? +``` + +#### Impact +- Runtime crashes through crafted EVM calls +- Denial of service attacks +- Network instability + +#### Recommended Fix +- Replace all `panic!()` calls with proper error handling +- Implement graceful error recovery +- Return appropriate error codes instead of panicking + +--- + +### 4. Insufficient Access Control for Critical Functions + +**Severity**: 🔴 **CRITICAL** +**Location**: `frame/pallet-counter/src/lib.rs:80-105` +**CVSS Score**: 9.0 (Critical) + +#### Description +Critical mint/burn functions rely solely on root access without additional security measures. + +#### Vulnerable Code +```rust +#[pallet::call_index(0)] +pub fn mint(origin: OriginFor, account: T::AccountId, amount: SubstrateBalanceOf) -> DispatchResult { + ensure_root(origin)?; // Only check - no additional validation + T::SubstrateCurrency::deposit_creating(&account, amount); + Ok(()) +} +``` + +#### Impact +- If root is compromised, unlimited token minting is possible +- No rate limiting or amount restrictions +- Single point of failure + +#### Recommended Fix +- Implement multi-signature requirements +- Add time delays for large operations +- Implement amount limits and rate limiting +- Add emergency pause functionality + +--- + +## 🟠 High-Risk Issues + +### 5. Integer Overflow/Underflow Risks + +**Severity**: 🟠 **HIGH** +**Locations**: Multiple files including `frame/base-fee/src/lib.rs` + +#### Issues Found +- Base fee calculations can overflow (`BaseFeeOverflow` events) +- U256 to u128 conversions can truncate values +- Arithmetic operations lack proper bounds checking + +#### Recommended Fix +- Use saturating arithmetic operations +- Add proper bounds checking for all numeric operations +- Implement comprehensive overflow protection + +--- + +### 6. Insufficient Input Validation + +**Severity**: 🟠 **HIGH** +**Location**: `frame/pallet-counter/src/lib.rs:258-300` + +#### Description +Message validation in transfer functions is easily bypassed. + +#### Vulnerable Code +```rust +let blacklisted_words = ["scam", "fraud", "hack", "illegal", "phishing"]; +// Simple string contains check - easily bypassed +``` + +#### Impact +- Bypass content filtering with simple character substitution +- No proper length validation +- Missing encoding validation + +#### Recommended Fix +- Implement regex-based content filtering +- Add proper input sanitization +- Implement comprehensive validation rules + +--- + +### 7. Precompile Security Gaps + +**Severity**: 🟠 **HIGH** +**Location**: `precompiles/src/precompile_set.rs` + +#### Issues +- Complex recursive call handling without proper bounds +- Insufficient gas cost validation +- Missing access control for sensitive operations + +#### Recommended Fix +- Implement proper recursion depth limits +- Add comprehensive gas cost validation +- Implement role-based access control for precompiles + +--- + +## 🟡 Medium-Risk Issues + +### 8. Unsafe RPC Method Exposure + +**Severity**: 🟡 **MEDIUM** +**Locations**: Multiple RPC modules + +#### Description +Several "unsafe" RPC methods are exposed that could leak sensitive information. + +#### Recommended Fix +- Review all RPC method exposure +- Implement proper authentication for sensitive methods +- Add rate limiting for RPC calls + +--- + +### 9. Database Error Handling + +**Severity**: 🟡 **MEDIUM** +**Location**: `client/db/src/parity_db_adapter.rs:26` + +#### Vulnerable Code +```rust +panic!("Critical database error: {:?}", e); +``` + +#### Impact +- Database errors cause runtime panics +- No graceful degradation + +#### Recommended Fix +- Implement proper error handling for database operations +- Add retry mechanisms for recoverable errors +- Implement graceful degradation strategies + +--- + +## 📋 Detailed Recommendations + +### Immediate Actions Required (Critical Priority) + +1. **🚨 Fix Signature Verification** + - Add nonce/timestamp to prevent replay attacks + - Include recipient address and chain ID in signed messages + - Implement proper signature validation context + +2. **🚨 Remove All Panic Calls** + - Audit entire codebase for `panic!()` calls + - Replace with proper error handling + - Implement graceful error recovery + +3. **🚨 Enhance Access Controls** + - Implement multi-signature requirements for critical functions + - Add time delays for sensitive operations + - Create proper authorization layers + +4. **🚨 Memory Safety Review** + - Review all `unsafe` code blocks + - Implement safer alternatives where possible + - Add comprehensive lifetime management + +### Security Enhancements (High Priority) + +1. **Input Validation Framework** + - Implement comprehensive input sanitization + - Add proper bounds checking for all numeric operations + - Create centralized validation utilities + +2. **Error Handling Standardization** + - Implement consistent error handling patterns + - Add proper logging for security events + - Create error recovery mechanisms + +3. **Access Control Framework** + - Implement role-based access control + - Add permission management system + - Create audit trails for sensitive operations + +### Long-term Security Measures + +1. **Security Testing** + - Implement comprehensive unit tests for edge cases + - Add integration tests for security scenarios + - Implement fuzz testing for input validation + +2. **Monitoring and Alerting** + - Monitor for unusual transaction patterns + - Alert on large mint/burn operations + - Track precompile usage patterns + - Log all critical function calls + +3. **External Security Measures** + - Conduct formal verification for critical pallets + - Engage external security auditors + - Establish bug bounty program + - Regular security reviews + +--- + +## 🛡️ Security Best Practices + +### Development Practices +- [ ] Implement secure coding guidelines +- [ ] Regular security code reviews +- [ ] Automated security testing in CI/CD +- [ ] Dependency vulnerability scanning + +### Runtime Security +- [ ] Implement emergency pause mechanisms +- [ ] Add circuit breakers for critical functions +- [ ] Rate limiting for sensitive operations +- [ ] Comprehensive event logging + +### Operational Security +- [ ] Multi-signature governance +- [ ] Staged deployment process +- [ ] Incident response procedures +- [ ] Regular security assessments + +--- + +## 📊 Risk Assessment Summary + +| Severity Level | Count | Priority | +|----------------|-------|----------| +| 🔴 Critical | 4 | Immediate Fix Required | +| 🟠 High | 3 | Fix Before Production | +| 🟡 Medium | 2 | Address Soon | +| **Total** | **9** | **Not Production Ready** | + +--- + +## 📝 Conclusion + +The Argochain codebase contains multiple **critical security vulnerabilities** that make it unsuitable for production deployment. The most severe issues include: + +1. **Signature verification flaws** enabling replay attacks +2. **Memory safety violations** in unsafe code blocks +3. **DoS vectors** through panic-based crashes +4. **Insufficient access controls** for critical functions + +**⚠️ STRONG RECOMMENDATION**: Do not deploy this codebase to production until all critical and high-risk vulnerabilities are addressed. Consider engaging professional blockchain security auditors for a comprehensive review before any mainnet launch. + +--- + +## 📞 Contact + +For questions about this security audit or to discuss remediation strategies, please create an issue in this repository or contact the security team. + +**Note**: This audit was conducted on the current codebase state. Regular security reviews should be performed as the codebase evolves.