Cybercriminal Returns $400,000 After Exploiting DeFi Platform
Hacker Manipulated Token Prices on EDE Finance in Unprecedented Cyber Attack
Wed, 31 May 2023, 14:26 pm UTC
A cybercriminal who exploited vulnerabilities in the DeFi platform, El Dorado Exchange (EDE Finance), has returned over $400,000 in USDC and USDT stablecoins. This unexpected development came to light after the platform admitted to an ill-conceived attempt to manipulate market prices.
Earlier, EDE Finance fell victim to a cyber attack, resulting in approximately $581,000 being stolen, according to Peckshield, a security entity specializing in tracking and investigating suspicious blockchain activities.
Following the incident, the value of the EDE token dropped by 15% to $0.58, according to CoinMarketCap. In a report from May 30, Numen Cyber Labs revealed that the hacker had successfully manipulated token prices on the decentralized exchange by exploiting a specific function in the platform's confidential Oracle contract, triggered by the "func_147d9322" function.
Numen Cyber Labs concluded that these manipulative actions allowed the hacker to exploit the platform and manipulate token prices.
Meanwhile, LunaraySEC, the auditing entity for the project, stated that the exploited vulnerabilities were beyond the scope of its initial audit. It further mentioned that the EDE Finance team promptly identified and addressed the issue. Blockchain data indicates that the cybercriminal managed to pocket over $100,000 even after returning hundreds of thousands of dollars in USDT and USDC from the stolen assets.
Based on blockchain communication, the hacker has made allegations against the project's team, accusing them of having a hidden agenda and secretly inserting a backdoor that would have allowed them to liquidate user accounts and embezzle funds. The cybercriminal pledged to return the stolen funds if the team confessed to this malicious intent, while also threatening to expose additional vulnerabilities within the platform.
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