Saddle Finance exchange lost $10 million in hack

BlockSec was able to save another $3,8 million from a hacker with its attack detection system

01.05.2022 - 08:00

220

2 min

What’s new? On April 30, an unknown person hacked into a decentralized stablecoin trading exchange, Saddle Finance, and withdrew 3 540 ETH ($10 million). The platform confirmed the incident, saying its team was investigating a “possible exploit.” A further $3,8 million was saved due to BlockSec’s attack detection system, which audits smart contracts.

Information on Etherscan

How did events develop? The hacker tried to withdraw 4 900 ETH ($13,8 million), but BlockSec spotted the exploit and notified Saddle. BlockSec was able to save $3,8 million from the hacker by using an internal attack detection and front-run system that uses autonomous arbitrage bots called flashbots. Saddle Finance has contacted BlockSec for a refund.

Source: Twitter.com

What is known about Saddle Finance? It is a decentralized automated market maker (AMM) on the Ethereum blockchain. It is optimized for trading cryptocurrencies backed by traditional assets.

What happened before? On April 28, Deus Finance, a DeFi protocol, was hacked again. A hacker managed to withdraw $13,4 million. The exploit occurred on the Fantom network. According to the experts, this was made possible by manipulating the price oracle, which reads data from the USDC/DEI pair, with an instant loan. The manipulated price of the DEI collateral was used to borrow and deplete the pool.

Author: