Elephant Money, the DeFi protocol behind the ELEPHANT token, said hackers stole $11.2 million from Binance Coin, according to a report.
The company reportedly faced an “automated attack” on its cash.
In a medium post, the company’s founder said he was tackling the problem in partnership with CertiK, a blockchain security company, and DeFi insurance protocol InsurAce.
“It took a significant amount of capital to break through the defenses of the system. Over $261 million in volume,” the founder said. “Every time bad actors win, it hurts the whole space. There are top teams who were aware of the weaknesses and stood aside and did nothing at your expense. Even after me and other community members asked them to disclose.
Blockchain security firms took to Twitter to discuss the attack, saying it was a “traditional price manipulation attack”, in which attackers borrowed Binance Coin in a flash loan and exchanged it for thousands of ELEPHANT tokens.
The attackers allegedly minted TRUNK stablecoins, which increased the price of ELEPHANT tokens, eventually exchanging both types of coins for Binance Coin and Binance’s US dollar stablecoin.
“Since the token value after the attack is greater than the cost, the attacker can get around $4 million in profit in one attack round,” BlocSec said, noting that the attacker simply repeated this process. to steal more funds.
See also: Betting Big, Hacker Risks $3M at Con DeFi Lending Protocol on $15.6M
PYMNTS wrote that in other crypto hacking news, a hacker who bet $3 million that a DeFi protocol was exploitable was right, and he got away with $12.6 million of profits.
Crypto hacks are nothing new, especially DeFi hacks. But this one had some worrying aspects, including that it was “a real gamble” according to the report, with failure meaning the scammer would have lost $3 million in ether.
And there was the issue of DeFi security, in which the oracle was tricked into thinking that Inverse Finance’s native INV crypto was worth more than it actually was, leaving the criminal to withdraw far more charges of crypto coins.