Onyx Exploiter Siphons $2.1 mn On Tornado cash
Onyx Protocol, a decentralized peer-to-peer lending platform, lost $2.1 million due to an exploit of a market with no liquidity. The hacker exploited a known bug, a rounding issue behind the CompoundV2 fork.
The alleged liquidity-less oPEPE market was abused by donating funds from other markets with liquidity, which were then redeemed using the known rounding issue. This follows a similar attack on Hundred Finance on April 16, where the attacker manipulated the exchange rate between ERC-20 tokens and hTOKENS, allowing them to withdraw more tokens than originally deposited.
To combat these hack attempts, blockchain analysis can be used, which involves six major steps: transaction tracing, address clustering, behavioral analysis, pattern recognition, regulatory vigilance, and collaboration.
(With inputs from Shikha Singh)
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