Moola Market recovers 93% of Exploited Funds

05/12/2022
07/12/2022
08/12/2022

MetaVentures Bangkok 2022

Bangkok, Thailand
14/12/2022
27/02/2023

ICBM Expo

Dubai, UAE
03/03/2023
The Crypto Times

Crypto lending platform Moola Market recovers a majority of the exploited funds. The market was exploited through value manipulation of its native token, MOO on October 18. This resulted within the platform dropping upto $9 million.

The platform tweeted that it was investigating the incident and had paused all exercise. The platform additionally added that it contacted authorized authorities and supplied a bug bounty to the attacker in the event that they returned the funds inside 24 hours.

An evaluation of the exploit reveals that the attacker took benefit of the low liquidity of MOO. The attacker initially bought $45,000 price of MOO and deposited it as collateral to borrow CELO.

The borrowed CELO was then used as collateral to purchase extra MOO. This course of was repeated just a few instances to drive up the value of MOO. The attackers managed to extend the value of MOO by 6400%.

With this elevated token value, the attacker managed to purchase $6.6 million price of CELO, $1.2 million price of MOO, in addition to $740,000 of cEURO and $644,00 of cUSD.

Five hours after the information of the exploit was confirmed, the protocol tweeted that that they had recovered 93% of the exploited funds, whereas the attacker seemingly stored the remaining, which amounted to about $500,000.

The protocol has additionally tweeted {that a} governance vote is on-going for a proposal which doesn’t enable MOO to be additional used as collateral to mitigate future danger and keep away from additional exploits akin to this.

Compiled by Coinbold

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