The Moola Market hacker has returned most of the stolen funds following an exploit that took place on Tuesday.
"Following today's incident, 93.1% of the funds have been returned to the Moola governance multi-sig," the team tweeted. The attacker kept the remaining funds some 700,000 CELO tokens as a negotiated bounty reward that the team had previously offered.
The attacker took advantage of the low liquidity of MOO, the native token on Moola's lending protocol on the Celo blockchain. They inflated the value of MOO on a decentralized exchange called Ubeswap and leveraged the tokens as collateral to drain user assets deposited into the protocol,More specifically, the attacker started out with 243,000 CELO tokens held in their address on the Celo network. The next step was depositing 60,000 CELO tokens on Moola and borrowing 1.8 million MOO tokens. The attacker then used their remaining CELO tokens to rapidly inflate the price of MOO. The perpetrator moved on to leverage the increased value of their MOO tokens as collateral to borrow other assets in a loop. By using just $182,000 in CELO, they were able to drain 8.8 million CELO , 765,000 cEUR , 1.8 million MOO , and 644,000 cUSD from Moola Market, perWhile the project has recovered most of its funds, the activity on the lending protocol remains paused for the time being. The lending service will be resumed only after community discussions on the next steps, the team noted. Moola Market raised© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.Vishal Chawla is a reporter who has covered the ins and outs of the tech industry for more than half a decade. Before The Block, Vishal worked for media firms like Crypto Briefing, IDG ComputerWorld, CIO.com and Analytics India Mag. Follow him on Twitter @vishal4c.
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