{"id":40046,"date":"2023-07-25T01:17:08","date_gmt":"2023-07-25T05:17:08","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/hackers-steal-3-2-million-worth-of-ethereum-from-conic-finance-defi-protocol\/"},"modified":"2023-07-25T01:17:10","modified_gmt":"2023-07-25T05:17:10","slug":"hackers-steal-3-2-million-worth-of-ethereum-from-conic-finance-defi-protocol","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=40046","title":{"rendered":"Hackers Steal $3.2 Million Worth of Ethereum From Conic Finance DeFi Protocol"},"content":{"rendered":"
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The decentralized finance (DeFi) protocol Conic Finance has lost more than $3.2 million worth of Ether (ETH) in two separate hacking incidents in recent days.<\/p>\n

The first attack, which happened on Friday last week, was described by the Conic Finance team as a “re-entrancy attack\u201d that exploited a vulnerability in Curve V2 pools, earning the attacker 1,700 ETH tokens.<\/p>\n

\u201cA fix to the affected contract is being deployed,\u201d the team wrote.<\/p>\n

The team went on to assure the community that the exploit \u201ccannot be done again\u201d for the same Omnipool, and said that \u201cno other Conic Omnipools are affected by this issue.\u201d<\/p>\n

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Second attack<\/h2>\n

A few hours later, however, the team again reported that they had suffered an exploit, this time draining approximately $300,000 worth of tokens from the crvUSD Omnipool.<\/p>\n

\u201cIn response to this and given today’s ETH exploit, we immediately enforced maximum safety measures and temporarily shutdown all Omnipools,\u201d a new tweet from Conic Finance said.<\/p>\n

The team stressed that the second attack was \u201cunrelated to the ETH Omnipool’s re-entrancy exploit.\u201d<\/p>\n

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\u2018Extremely difficult\u2019 two days<\/h2>\n

In a post-mortem update published after the two attacks, the Conic Finance team admitted that the past two days have been \u201cextremely difficult.\u201d<\/p>\n

\u201cWe feel devastated by this situation and will do everything in our power to recover the stolen funds,\u201d the team said.<\/p>\n

The post-mortem update appeared to place part of the blame for both of the attacks on Curve, saying about the second incident that interaction with \u201cimbalanced Curve pools\u201d caused the vulnerability.<\/p>\n

Curve is a decentralized exchange (DEX) for stablecoins that uses the automated market maker (AMM) model to manage liquidity.<\/p>\n

\u201cWhile we did have some mechanism in place to ensure we did not interact with imbalanced Curve pools, the bounds that we had set were not tight enough and allowed the attacker to slowly drain funds from the pool,\u201d the team wrote.<\/p>\n

Despite this, the update also said that Curve\u2019s team members \u201cdeserve recognition for their massive help and support.\u201d<\/p>\n

Conic Finance is a relatively new DeFi project, and the protocol\u2019s token, CNC, is for now only listed on MEXC and CoinEx in addition to a few decentralized exchanges.<\/p>\n

As of press time on Monday, the CNC token was down by 45% over the past 7 days, data from CoinGecko showed.<\/p>\n<\/p><\/div>\n