From b792a101e3abf4de6ceee420770ec30aed84452d Mon Sep 17 00:00:00 2001
From: sherlock-admin <95431921+sherlock-admin@users.noreply.github.com>
Date: Thu, 21 Dec 2023 23:15:23 +0100
Subject: [PATCH] Upload report

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+# Issue M-1: FootiumClub::ERC721Upgradeable/Pausable Cannot pause transfers on FootiumClub NFT 
+
+Source: https://github.com/sherlock-audit/2023-12-footium-judging/issues/8 
+
+## Found by 
+cergyk
+## Summary
+Pausing FootiumClub only pauses the calls to `safeMint` and not transfers. This means that when paused, clubs can still be traded on secondary markets such as OpenSea.
+
+The pause feature is an emergency feature meant to protect users and the protocol in case of major breach for example. In the case of a major emergency the pausing implemented currently is useless, since all unpermissioned actions such as transferring and selling NFTs are still enabled. 
+
+## Vulnerability Detail
+
+FootiumClub inherits ERC721Upgradeable class, it is not aware of the pausable abilities of the child contract:
+https://github.com/sherlock-audit/2023-04-footium/blob/main/footium-eth-shareable/contracts/FootiumClub.sol#L16
+
+When the admin pauses the contract, only methods explicitely using whenNotPaused modifier would be impacted, in this case only safeMint:
+https://github.com/sherlock-audit/2023-04-footium/blob/main/footium-eth-shareable/contracts/FootiumClub.sol#L56-L69
+
+This means that `transfer` can still be called, and tokens can still be traded on secondary.
+
+## Impact
+
+Pausing the NFT contract still enables transfers, and selling on secondary.
+
+As seen in recent events such as here:
+https://x.com/0xfoobar/status/1736060236354498641?s=20
+
+A non operating pausing feature will prevent the team to react accordingly following a hack, and may cause loss of NFTs to users of the protocol
+
+
+## Code Snippet
+
+## Tool used
+Manual Review
+
+## Recommendation
+
+FootiumClub should inherit ERC721PausableUpgradeable class of openzeppelin-contracts-upgradeable, implementing a check on paused in _beforeTokenTransfer hook:
+https://github.com/OpenZeppelin/openzeppelin-contracts-upgradeable/blob/dd8ca8adc47624c5c5e2f4d412f5f421951dcc25/contracts/token/ERC721/extensions/ERC721PausableUpgradeable.sol#L37-L46
+
+
+
+## Discussion
+
+**sherlock-admin2**
+
+1 comment(s) were left on this issue during the judging contest.
+
+**darkart** commented:
+> Contract will be deployedonly on Arbitrum
+
+
+
+**nevillehuang**
+
+At first glance, this seems to be a future type issue. But I think it is a good catch by the watson, as sponsor confirmed with me that their current contracts allows for full pausability as seen [here](https://etherscan.io/address/0x659cf1306edba213d1fb8f9352b4593a82b05d0c#code) and that pausing transfers would be the behaviour they want, which means this attack could be possible during migration when a snapshot is taken. However, it is also speculating that the game will continue running on L1 when migrated to L2.
+
+Funny enough, in the latest edits, the migration scenario was removed, and both the scenario wasn't highlighted on #8 and #13, so can be argued that both issues are invalid given the impact described of NFT sales is not a valid issue as it is speculating on a emergency situation. On the other hand, this could also be seen as a core functionality of pausing not working.
+
+I am keeping both #13 and  #8 as a valid medium given the root cause is valid, and that the watson previously highlighted a potential scenario that is concerning and of value to sponsor before, and this would constitue a undesired future type issue.
+
+This is the previously highlighted scenario as seen in this diff:
+
+https://github.com/rcstanciu/diffs/blob/main/008.diff
+
+> Alice owns FootiumClub NFT of tokenId: 1234
+
+> Alice makes an offer for selling this token for 0.2 eth on Opensea.
+
+> Unknowingly to Alice & Bob, Footium team makes the snapshot for L2 migration.
+Footium team pauses the FootiumClub NFT contract, in order to freeze token ownership.
+
+> Since transfers are not actually paused, Bob takes Alice's offer on Opensea.
+
+> The snapshot had already been taken, so only Alice can claim the equivalent club on L2, and Bob is rugged
+
+**Czar102**
+
+After an internal discussion, taking into account that:
+- the only function is guarded by the `whenNotPaused` modifier, and
+- that is a function guarded by an `onlyOwner` modifier, which makes the `whenNotPaused` modifier useless as the owner has control over the paused status,
+I think it is a nice catch to note that the protocol intention was to actually guard the transfers and make transfers pausable (using `ERC721PausableUpgradeable`) and it was a protocol error to use a vanilla `Pausable`.
+
+I think it could have been clear and can be a valid issue solely based on the resources available to Watsons during the audit. Hence, I think it should be Medium.
+