Onyx

Bitcoin ETF

April

Read

<div class="cryptonews">
 <p class="is-style-lead">On Oct. 27, Onyx Protocol, a decentralized peer-to-peer lending platform, experienced a significant security breach, resulting in a loss of approximately $2.1 million due to an <a rel="noopener noreferrer nofollow" title="exploit" href="https://thebittimes.com/tag/exploit.html">exploit</a> in a low-liquidity market.</p>
 <p>The incident has raised concerns regarding the vulnerabilities present in decentralized finance (DeFi) platforms, particularly when it involves markets with low liquidity.</p>
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
  <div class="wp-block-embed__wrapper">
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
    <p lang="en" dir="ltr">The @OnyxProtocol hack leads to ~$2.1M loss by <a rel="noopener noreferrer nofollow" title="exploit" href="https://thebittimes.com/tag/exploit.html">exploit</a>ing a known rounding issue behind the popular CompoundV2 fork. <br><br>Basically, the <a rel="noopener noreferrer nofollow" title="exploit" href="https://thebittimes.com/tag/exploit.html">exploit</a>ed oPEPE market was deployed 5 days ago without any liquidity. This empty market was abused with donation to borrow funds from other… https://t.co/ijkXbOyYr2 pic.twitter.com/fbHdZhTz0E</p>— PeckShield Inc. (@peckshield) November 1, 2023
   </blockquote>
  </div>
 </figure>
 <p>The attacker targeted a known bug—a rounding issue in the CompoundV2 fork, a popular framework in the DeFi space. This vulnerability went unnoticed by Onyx Protocol until blockchain investigator PeckShield identified and reported the incident.</p>
 <p>PeckShield’s independent investigation revealed that the attacker <a rel="noopener noreferrer nofollow" title="exploit" href="https://thebittimes.com/tag/exploit.html">exploit</a>ed the oPEPE market, which was notably lacking in liquidity, by manipulating donations to borrow funds from other more liquid markets. They subsequently redeemed the borrowed funds through the <a rel="noopener noreferrer nofollow" title="exploit" href="https://thebittimes.com/tag/exploit.html">exploit</a>ation of the rounding issue.</p>
 <div class="cn-block-related-link">
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"><use xlink:href="#"></use>
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> Scammers exploit Bitcoin ETF hype with fake IBTC token
 </div>
 <figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
  <div class="wp-block-embed__wrapper">
   <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
    <p lang="en" dir="ltr">#CertiKSkynetAlert @HundredFinance’s attacker manipulated the exchange rate between ERC-20 tokens and htokens which allowed them to withdraw more tokens than they had originally deposited. The estimated losses of this attack is around $7.4 million. <br><br>Stay vigilant! https://t.co/1hxAnFoNjj</p>— CertiK Alert (@CertiKAlert) April 15, 2023
   </blockquote>
  </div>
 </figure>
 <p>This is not the first instance of such an exploit; a similar attack was carried out on April 16 against the multichain lending protocol, Hundred Finance, resulting in a loss of $7 million. In the case of Hundred Finance, the attacker manipulated the exchange rate between ERC-20 tokens and hTOKENS, which enabled them to withdraw a larger amount of tokens than they initially deposited.</p>
 <p>These recurring instances of cyber <a rel="noopener noreferrer nofollow" title="exploit" href="https://thebittimes.com/tag/exploit.html">exploit</a>s highlight the pressing need for enhanced understanding and proficiency in tracking cryptocurrencies to mitigate such risks. The process encompasses transaction tracing, address clustering, behavioral <a rel="noopener noreferrer nofollow" title="Category Analysis" href="https://thebittimes.com/analysis.html">Analysis</a>, pattern recognition, regulatory vigilance and collaboration—integral steps to ensure the integrity and security of decentralized finance platforms.</p>
 <div class="cn-block-related-link">
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"><use xlink:href="#"></use>
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> PeckShield sees increase in BingChatGPT scam tokens
 </div> <span class="google-news-banner__label">Follow Us on Google News</span>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/hackers-exploit-onyx-protocol-for-2-1m-tbt68696.html">https://thebittimes.com/hackers-exploit-onyx-protocol-for-2-1m-tbt68696.html</a></p>

Hackers exploit Onyx Protocol for $2.1m

TheBitTimes

Other articles published on Nov 1, 2023

PayPal scores UK crypto license after brief local Bitcoin buy halt

Vitalik Buterin Transfers Ethereum to Coinbase: Is He Selling ETH?

ADA Price Prediction 2024 to 2027: Will ADA Hit $10 Soon?

Hackers hijack Frax Finance DNS domain

ETC Price Analysis: Buyers Rest Before A Breakout Run To $20!

Bitcoin Price Topside Bias Vulnerable If It Continues To Struggle Below $35K

Join our free newsletter for daily crypto updates!