Minutes before 12:00 UTC on June 6, Elrond CEO and co-founder Beniamin Mincu, tweeted that he and his team are “investigating a number of suspicious activities” on Maiar decentralized crypto exchange (DEX).
Shortly after the exchange was disconnected from Minku making report the problem was identified and a “hot fix” was implemented.
on twitter a thread published nearly 24 hours later around 11 p.m. UTC on June 6, Mincu said that a potentially critical bug had been discovered that opened “an area of exploit that we just needed to address and mitigate immediately.”
Suspicious activity may have been identified and explained on Twitter. a thread Pseudonymous network analyst “Foudres”, who reported that a potential attacker deployed a smart contract that somehow allowed them to withdraw over 1.65 million Elrond (EGLD).
The three wallets were able to mysteriously withdraw 800,000, 400,000 and 450,000 EGLD respectively, which at current prices would amount to a total of nearly $113 million.
The attackers were able to sell about 800,000 EGLDs worth about $54 million, causing Maiar DEX’s EGLD price to drop from $76 to about $5. The rest of the cryptocurrency is either still held in various wallets, has been pegged to USD Coin (USDC) and Ether (ETH), or has been traded on centralized exchanges.
The price of EGLD fell 9.5% from around $74 to a 24-hour low of $65.50 but has since recovered slightly and is now trading around $68.
Mincu stated in his update that an update was implemented to fix the bug and that after clarifying that the implemented solutions are tested and working, a technical explanation will be provided.
DeFi attacks are on the rise – can the industry stop the tide?
He stated that all funds are safe and will be available after the DEX restart scheduled for tomorrow evening, and said that most of the funds used have either been fully recovered or will be covered by the Elrond Foundation.
As Cryptooshala previously reported, around $1.6 billion worth of cryptocurrencies were stolen from DeFi platforms in the first quarter of 2022, and more than 90% of all stolen cryptocurrencies come from hacked decentralized finance (DeFi) protocols such as DEX.
Maiar Exchange, a decentralized exchange (DEX) embedded on the Elrond blockchain, was temporarily disabled after an attacker used an exploit that stole about $113 million worth of EGLD.
Credit : cointelegraph.com