A flash loan attack launched against New Free DAO (NFD) drained $1.25 million, price to crash by 99%
New Free DAO lost over $1.25 million in a flash loan attack. NFD token price has dropped by over 99%.
NFD 4-hour chart | Source: TradingView
New Free DAO crashes 99% after $1.25M flash loan attack
Blockchain security company PeckShield has alerted the crypto community that the New Free DAO project has probably suffered a $1.25 million loss. The company says that the project has likely suffered a flash loan attack, causing the NFD token value to drop by over 99%.
Also that, blockchain security firm Certik raised that the attacker manipulated NFD’s “addMember()” function to add himself as a member. And it gave him access to use the unverified contract to execute three flash loans.
New Free Dao – $NFD was exploited via flash loan attack gaining the attacker 4481 WBNB (approx. ~$1.25M) causing the token to slip in price 99%.
The attacker has connections to Neorder – $N3DR attack from 4 months ago where they took 930 BNB at the time. pic.twitter.com/5Rcht3YiIK
— CertiK Alert (@CertiKAlert) September 8, 2022
The attacker has made away with $1.25 million worth of BNB and has swapped it for BSC-USD. The token was created on the Binance Smart Chain (BSC) and was a DeFi token that seemingly focused on the NFT niche, and offered a multitude of features. About $500,000 is said to have been swapped to BUSD and being laundered through sanctioned mixing protocol Tornado Cash.
However, the project does not seem like one that has a particularly strong reputation within the crypto market. There is little information on it, but it appears to have been popular enough to have lost over $1 million dollars.
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