The Layer 1 Elrond network got hacked with more than $1.65 million worth of tokens stolen
There was a security breach in Elrond, an L1 network. Hackers obtained nearly $1.65 million EGLD for free, and sold them through Maiar DEX, resulting in a 92% drop. At present, the official has suspended DEX and related APIs.
Tonight, something that i will call an attack was done on Maiar Exchange (imho). EGLD Price go to hell at 5$ then Maiar Dex was stopped
How is it possible ? a thread ⬇️
RT, Like and comments really apreciated, thanks a lot ♥️ pic.twitter.com/6coqYaV8IQ
— foudres.eth (@Foudres_) June 6, 2022
Elrond L1 network wacked, with $1.65M EGLD stolen
The project was hacked with over $1.65 million worth of tokens stolen and dumped on the market, which caused a massive 95% drop in EGLD tokens. The attack is said to be aimed at a certain exchange.
There are at least three addresses associated with the mine, ending with f854j, fu950, and 4ww0rt. These addresses are created concurrently and receive funds from Binance. After receiving some funds from the exchange, they deployed the smart contract with the deploy function.
During the next hour, a new operation took place with the withdraw function, after which the hacker received $1.65 million worth of tokens. Unfortunately, it is not clear how hackers were able to withdraw such a large amount of money with just one operation.
Several developers have provided their hacked version based on the vulnerability in the liquidity of wEGLD and EGLD smart contracts. Although the nature of the vulnerability is still unclear, as it could be related to the exchange or network side.
After stealing the funds, the hackers are intentionally hiding their tracks by generating new addresses and transferring the funds from one network to another. Unfortunately for them, it is almost impossible to make money disappear without using money mixing solutions.
Fortunately, 95% only appeared on the EGLD/USDC trading pair as the EGLDUSDT trading pair on the KuCoin crypto exchange was intact and no unusual fluctuations were observed on the chart.
It is known that the DEX API is prevented from determining the real cause of the mining and seeking to return the funds or recover the loss. If hackers decide to withdraw using stablecoin USDC, they will most likely fail due to the centralized nature of this coin.
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