ELEPHANT token lost almost 90% of its value in no time as its team asks holders not to sell
According to some reports, Elephant Money, a decentralized “yield farming” protocol on BNB Chain with native token ELEPHANT and stablecoin TRUNK, has suffered from an attack on its reserve.
Elephant Money DeFi was hacked
The Elephant Money DeFi protocol fell victim to a price manipulation attack that started with borrowed Wrapped Binance Coins (WBNB).
2/ the attacker borrowed 131,162.00 WBNB and 91,035,000.00 using the flash loan.
Then the attacker swapped the 131,162.00 WBNB to 34,244 ELEPHANT Token. pic.twitter.com/VMGomDar7R
— BlockSec (@BlockSecTeam) April 12, 2022
In some operations, the attacker minted TRUNK stablecoin and exchanged it for additional WBNB and BUSD. It resulted in a spike in the price of ELEPHANT and a profit of $4 million for the attackers per cycle.
Hackers performed this attack several times; per Elephant Money’s estimations, $11.2 million in equivalent has been lost permanently. Another top-tier DeFi security team, PeckShield, called this sort of attack “forced investment.”
The Elephant Money team is already working on an emergency patch and new mechanisms to prevent similar attacks from happening again.
Immediately after the attack, the ELEPHANT price, which is the liquidity reward token Elephant Money offers, dropped by almost 88% quickly. Despite a slight retracement, at press time, the token changes hands at $0.000000088508, or 77.1% down from yesterday’s levels.
At the same time, Elephant Money’s representative also officially stated that none of the user’s funds are currently at risk. The only warning they gave was panic selling.
In recent weeks, the DeFi segment has experienced a series of hacker attacks. Following the record-breaking hack of Axie Infinity’s Ronin Network, the Sky Mavis team launched a $1 million bounty campaign.