DeFi Protocol Moola Market Exploited of $8.4 Million

• The exploiter stole 243,000 CELO from Binance and used it in an attack.
• Users were cautioned against trading mTokens, Moola’s interest-bearing tokens.

Millions of dollars were made off of yet another DeFi protocol. The non-custodial liquidity protocol on Celo, Moola Market, is the protocol at hazard this time around. Moola, like other DeFi protocols, lets its customers earn compound interest on deposits or take out over-collateralized loans, delegated loans, or flash loans.

The Block researcher Igor Igamberdiev tweeted out the news about the Moola vulnerability and concisely explained the $8.4 million assault on the platform.

Attacker Artificially Pumped Price

The exploiter stole 243,000 CELO from Binance and used it in an attack on Moola Market. After that, they borrowed 1.8 million of Moola’s MOO tokens and loaned 60,000 CELO to the Moola platform. Last but not least, the attacker started pumping the price of MOO by borrowing more tokens against the existing CELO.

The intruder stole 1.8 million MOO tokens, worth $655,000. They got 8.8 million CELO (about $6.5 million), 765,000 cEUR (about $750,000), and 644,000 cUSD (about $639,000), all of which are stablecoins tied to Celo.

The Moola Market team has addressed the hacking incident. The organization has issued a statement on Twitter saying it is “actively investigating [the] incident” and has temporarily suspended all platform activities. Users were also cautioned against trading mTokens, Moola’s interest-bearing tokens.

In addition, Moola said it “contacted law enforcement and taken steps to make it difficult to liquidate the funds.” Moreover, a reward was offered to the perpetrator of the theft if the money was returned within 24 hours. The news of the event follows a recent assault on the BitKeep wallet, in which $1 million was taken via the BNB Chain.

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