2 years ago
Ethereum-based lending protocol Inverse Finance (INV) said Saturday that it suffered from an exploit, with an attacker netting $15.6 cardinal worthy of stolen cryptocurrency.
According to Inverse, the attacker targeted its Anchor (ANC) wealth marketplace – artificially manipulating token prices to get loans against highly debased collateral.
This is the 3rd multi-million dollar hack of a decentralized concern (DeFi) protocol to marque headlines this week, and it underscores the progressively blase techniques being levied by attackers. On Tuesday the gaming-focused Ronin web announced a nonaccomplishment of much than $625 cardinal successful crypto and past 2 days aboriginal lending protocol Ola Finance said it was exploited for $3.6 million.
According to blockchain information steadfast PeckShield, the Inverse attacker took vantage of a vulnerability successful a Keep3r terms oracle Inverse uses to way token prices. The attacker tricked the oracle into reasoning that the terms of Inverse’s INV token was extraordinarily high, and past took retired multi-million-dollar loans connected Anchor utilizing the inflated INV arsenic collateral.
The onslaught was notably well-financed; successful bid to propulsion it off, the attacker archetypal withdrew 901ETH (~$3 million) from Tornado Cash, which is utilized to disburse crypto without leaving a wide trail. The attacker past injected the enigma funds into respective trading pairs connected the decentralized exchange SushiSwap – inflating the terms of INV successful the eyes of the Keep3r terms oracle.
With the terms of INV sufficiently high, the attacker past took retired INV-backed loans connected Anchor earlier arbitrageurs brought the terms of INV backmost down to mean levels.
A typical from PeckShield noted to CoinDesk that the onslaught was high-risk, since the $3 cardinal worthy of crypto utilized to instrumentality the terms oracle would person been wholly mislaid if the terms of INV fell backmost to mean levels earlier the attacker took retired the loans.
Altogether, the attacker managed to tally distant with 1588 ETH, 94 WBTC, 39 YFI and 3,999,669 DOLA. The attacker has cycled astir of the funds backmost done Tornado Cash – meaning it’s hard to cognize wherever the funds volition extremity up – but 73.5 ETH (~$250k) remains successful the attacker’s archetypal Ethereum wallet.
Inverse said successful its announcement that it has temporarily paused each borrowing connected Anchor, and a typical for the protocol told CoinDesk that it is moving with Chainlink to physique a caller INV oracle.
Inverse besides announced that it plans to marque a connection to its decentralized autonomous enactment (DAO) to “ensure each wallets impacted by the terms manipulation are repaid 100%,” though without providing further details.
DISCLOSURE
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Sam is simply a quality newsman astatine CoinDesk focused connected decentralized technology, DeFi and DAOs. He owns ETH, BTC and MATIC.
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