Moola Market attacker returns most of $9m looted for $500,000 bounty
Attacker scored around half a million dollar "bug bounty" after opting to surrender majority of cryptocurrency qu it operated from the Celo-based loan protocol.
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An attacker has returned just over 93% of the more than $9 million worth of cryptocurrencies he has mined from the Moola Market blockchain-based Celo Lending Protocol (CELO).
Around 18:00 UTC on October 18, the Moola Market team tweeted that they were investigating an incident and had suspended all activity, adding that they had contacted the authorities and offered a bug bounty to the exploiter if the funds were returned within 24 hours.
Analysis of the exploit by security firm Web3 Hacken shows that the attacker manipulated the price of the protocols low-liquidity native MOO token by initially buying around $45,000 and posting it as collateral to borrow of the CELO.
The borrowed CELO, along with other CELO provided by the attacker, was then used as collateral to borrow more MOO, driving up the price of the token. The attacker kept repeating this until the price of the MOO token increased by 6400%.
With the inflated token price, the attacker was able to borrow $6.6 million from CELO, $1.2 million from MOO, as well as $740,000 from Cello Euros (cEUR) and $644,000 from Celo Dollars (cUSD), all worth multiples more than their initial value. guarantee resulting in the loss of the protocol of approximately 9.1 million dollars.
Five hours after the exploit was initially confirmed, Moola Market tweeted that it had received just over 93% of the funds exploited, with the attacker apparently keeping the rest, earning around $500,000 in bug bounty .
Following today's incident, 93.1% of the funds have been returned to the governance multi-sig Moola. We have continued to suspend all activity on Moola, and will follow up with the community on next steps, and to safely restart Moola Protocol operations. (1/2)http...
Attacker scored around half a million dollar "bug bounty" after opting to surrender majority of cryptocurrency qu it operated from the Celo-based loan protocol.
New
An attacker has returned just over 93% of the more than $9 million worth of cryptocurrencies he has mined from the Moola Market blockchain-based Celo Lending Protocol (CELO).
Around 18:00 UTC on October 18, the Moola Market team tweeted that they were investigating an incident and had suspended all activity, adding that they had contacted the authorities and offered a bug bounty to the exploiter if the funds were returned within 24 hours.
Analysis of the exploit by security firm Web3 Hacken shows that the attacker manipulated the price of the protocols low-liquidity native MOO token by initially buying around $45,000 and posting it as collateral to borrow of the CELO.
The borrowed CELO, along with other CELO provided by the attacker, was then used as collateral to borrow more MOO, driving up the price of the token. The attacker kept repeating this until the price of the MOO token increased by 6400%.
With the inflated token price, the attacker was able to borrow $6.6 million from CELO, $1.2 million from MOO, as well as $740,000 from Cello Euros (cEUR) and $644,000 from Celo Dollars (cUSD), all worth multiples more than their initial value. guarantee resulting in the loss of the protocol of approximately 9.1 million dollars.
Five hours after the exploit was initially confirmed, Moola Market tweeted that it had received just over 93% of the funds exploited, with the attacker apparently keeping the rest, earning around $500,000 in bug bounty .
Following today's incident, 93.1% of the funds have been returned to the governance multi-sig Moola. We have continued to suspend all activity on Moola, and will follow up with the community on next steps, and to safely restart Moola Protocol operations. (1/2)http...
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