[M] Seller doesnt receive funds when buyer calls confirmReceipt if token is paused

Severity

Medium Risk

Relevant GitHub Links

https://github.com/Cyfrin/2023-07-escrow/blob/65a60eb0773803fa0be4ba72defaec7d8567bccc/src/Escrow.sol#L94

Summary

Some ERC20 tokens allow the contract owner to pause the token contract.

Vulnerability Details

In confirmReceipt, it is expected that the buyer will confirm the receipt of the report by calling the confirmReceipt function.

However, if the token is paused, the safeTransfer call will fail, and the seller will not receive the funds.

Impact

Confirming Receipt: If the payment token contract is paused when the buyer tries to call the confirmReceipt function, it could lead to a failure in the safeTransfer operation, and the funds will not be transferred to the seller. The escrow state might remain in the "Created" state, and the seller won't receive the payment.

The other issue remains during the disupte phase.

Resolving Dispute: If the payment token contract is paused during the dispute resolution process, it can impact the safeTransfer operations within the resolveDispute function. The arbiter's fee or the buyer's award might not be transferred successfully, leading to an unresolved dispute and funds remaining in the Escrow contract

Tools Used

Manual Review

Recommendations

Its important to check the status of the token contract before calling safeTransfer.

i.e is it paused?

Cyfrin / 2023-07-escrow