A scandal before THE scandal? – There is no longer any need today to return to the disaster of the fall of Terra’s UST and LUNA, as the story is now well known in the cryptosphere. But a few months before this cataclysmic event, another occurred without anyone noticing. The equivalent of tens of millions of dollars has indeed been diverted on Terra in October 2021.
A flaw in a smart contract has (again) made it possible to embezzle a fortune
After the loss of the stablecoin’s dollar peg TerrasUSD (USD) occurred on May 9, 2022, the latter never recovered, just like the LUNA. While an attempt to terra blockchain revival has just taken place, we learn that a serious fault in a smart contract of this network caused a major diversion of capital almost 8 months ago.
Twitter user @FatManTerra was the first to identify the anomaly. This exploit occurred on the contract of Mirror Protocol on October 8, 2021.
The attacker initially sent US$100,000 to the sensible contract locked the repositories of this protocol. The hacker then opened a trading position within the protocol by putting only 10 USD as a guarantee. He then chained the positions taken, which he was able to then unlock endlesslybecause poor position identification programming in Mirror Protocol did not prevent it.
“In a single transaction, the attacker turned $10,000 into $4,300,000. This operation was carried out several times, generating a total of more than 30 million dollars. This all seems to have gone completely unnoticed by Terraform Labs and the Mirror protocol team. This is the first time this attack has been revealed. »
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BlockSec Analysts Confirm $90 Million Stolen From Terra
As mentioned above, one of the positions was even duplicated 437 timesmaking it possible to report on its own a total of US$4.3 million (that’s as many dollars, at the time).
The cybersecurity company BlockSec confirmed this exploit in a detailed report, corroborating all of FatManTerra’s statements on Twitter. In total, it would be within $90 million of cryptos that would have been recovered via this protocol on Terra.
BlockSec adds that this programming error would have been “silently corrected” since then, without the Mirrot Protocol team having bothered to reveal the attack (if they had been aware of it before FatManTerra’s revelation).
A case reminiscent of the hacking the Ronin platform of the NFT game Axie Infinity last March. This exploit – which made it possible to divert for $650 million – had remained silent for some time before users noticed the consequences. In the present hack, one can wonder if the attacker committed the fatal error of keeping one’s UST ill-gotten. Because in this case, they are currently only worth 3 cents coin, instead of 1 dollar.
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