Hackers hacked into the Elrond network and stole $1,65 million

The attackers sold part of the stolen assets on the Maiar crypto exchange, causing the EGLD token rate to drop by 92% on this platform

07.06.2022 - 12:50

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What’s new? Hackers hacked into the Elrond Layer 1 (L1) network and stole over $1,65 million worth of the project’s native tokens EGLD. The attackers sold some of the stolen assets on the decentralized exchange Maiar, causing the EGLD rate to plummet by 91,5% from $75 to $6,4 on this platform, a Twitter user under the nickname foudres.eth reported. As a result, Maiar suspended operations of the platform and its related APIs. Its representatives reported that customers’ funds are safe and rewards will continue to be paid.

There was a security breach in Elrond, a L1 network. Hackers obtained nearly $1.65 million EGLD for free, and sold them through Maiar DEX, resulting in a 92% drop. At present, the official has suspended DEX and related APIs. https://t.co/Odv0Yi0JQV— Wu Blockchain (@WuBlockchain) June 7, 2022

How did events develop? User foudres.eth said that three crypto addresses that sold a “huge amount” of EGLD tokens were the cause of the disruption. The wallets were created at the same time and also received funds from the Binance exchange. They then deployed a smart contract, after which they received more than 1 600 000 tokens using the withdraw function. It remains unknown how the hackers were able to withdraw such a large amount of funds with just one transaction.

As for the Elrond hack, some developers believe a vulnerability in the liquidity of the wEGLD and EGLD smart contracts was the cause.

As of June 7, 14:45 UCT, the EGLD token is trading at $68,35, according to Binance.

Hackers previously exploited a re-entry vulnerability in Rari Capital’s Fuse pools lending protocol and withdrew more than $80 million.

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