Landing DeFi platform Onyx Protocol lost approximately $2.1 million as a result of an illiquid market exploit deployed on October 27.
See more
#PeckShieldAlert @OnyxProtocol has been exploited for ~2.1M pic.twitter.com/5Z50tCg6MD
— PeckShieldAlert (@PeckShieldAlert) November 1, 2023
PeckShield experts likely noticed the incident when the protocol team was not yet aware of it.
According to company specialists, attackers took advantage of a known rounding problem in the popular Compound v2 fork, which underlies the Onyx architecture.
This bug was used by unknown people in April to hack Hundred Finance worth approximately $7 million.
PeckShield specialists explained the mechanism of the attack on Onyx:
“Essentially, the exploited oPEPE market was deployed five days ago without any liquidity. The pool was filled with borrowed funds, which were then repaid due to the rounding problem.”
See more
The @OnyxProtocol hack leads to ~$2.1M loss by exploiting a known rounding issue behind the popular CompoundV2 fork.
Basically, the exploited oPEPE market was deployed 5 days ago without any liquidity. This empty market was abused with donation to borrow funds from other… pic.twitter.com/fbHdZhTz0E
— PeckShield Inc. (@peckshield) November 1, 2023
The attackers used instant loans to attract resources for the attack and manipulate exchange rates, a BlockSec representative specified in a comment to The Block.
On-chain data show that Onyx hackers have already sent 750 ETH (~$1.25 million) to the Tornado Cash mixing service. The latter came under US sanctions back in August 2022.
Let us remind you that the damage to the crypto industry from hacks and fraud in October decreased to $51.6 million. This is 85.6% less than a month earlier, according to Beosin data.
Subscribe to ForkLog on social networks
Found an error in the text? Select it and press CTRL+ENTER
ForkLog newsletters: keep your finger on the pulse of the Bitcoin industry!
2023-11-01 14:50:47
#Hackers #withdrew #million #Onyx #Protocol #ForkLog
