Aave purchases 2.7M CRV to clear bad debt following failed Eisenberg attack

1 year ago

Following a failed abbreviated attack, DeFi exploiter Avraham Eisenberg was liquidated from Aave astatine a nonaccomplishment of $10 million.

Aave purchases 2.7M CRV to wide atrocious indebtedness pursuing failed Eisenberg onslaught

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According to a caller post connected Jan. 26, Marc Zeller integrations pb astatine decentralized concern (DeFi) lending protocol Aave stated that the steadfast purchased 2.7 cardinal Curve (CRV) tokens which would wide "excessive remaining atrocious debt" wrong the adjacent 15 hours implicit a twelve transactions. The determination follows the assemblage support of Aave Improvement Protocol (AIP) 144, which deployed a swap declaration that acquires 2,700,000 units of CRV, with a USDC walk bounds of $3,105,000 and max portion worth of $1.15 per CRV token.

The atrocious indebtedness connected the Aave protocol resulted from a sophisticated exploit that took spot connected Nov. 23. Avaraham Eisenberg, who antecedently drained DeFi protocol Mango Markets and caused $47 cardinal successful nett damages, took connected a bid of dense measurement abbreviated CRV positions connected Aave successful an effort to orchestrate a abbreviated compression and unit developers to buyback his positions astatine upwards of 100% slippage owed to deficiency of liquidity.

However, it turned retired Aave had overmuch much liquidity than anticipated, and Eisenberg reportedly mislaid $10 cardinal connected the trade. Nevertheless, immoderate slippage occurred arsenic a effect of the incident, and Aave was near with a full of 2.656 cardinal CRV successful atrocious indebtedness portion liquidating Eisenberg's positions.

The aforesaid day, Mango Markets filed a suit against Avraham Eisenberg, asking the tribunal to rescind its $47 cardinal bounty statement with the hacker for his relation successful the $117 cardinal exploit connected Oct. 12, 2022. The U.S. Securities and Exchange Commission has charged Eisenberg with stealing $117 cardinal successful integer assets. Eisenberg was arrested successful Puerto Rico by the FBI connected Dec. 27, 2022, connected charges of commodities manipulation and commodities fraud.