DeFi Hackers Bag More Millions in Another Flash Loan Attack

Another flash loan attack has drained all of Warp Finance’s liquidity, costing liquidity providers (LP) $ 7.7 million.

However, the developer team has a chance to recover some of the money.

DeFi Suffers Flash Loan Attack, Again

Warp Finance, a lending platform that provides fixed loans for collateral in cryptocurrencies, suffered a flash loan attack, costing consumers $ 7.7 million.

The attacker took a double flash loan from DyDx and used three Uniswap pools to exploit Warp Finance.

Warp Finance had implemented a defective oracle operation, which allowed the hacker to get Ethereum at $ 141.9 apiece. Ethereum is currently trading at $ 648.52.

The last exchange before the DyDx loan repayment included $ 48.5 million DAI for 342,252 ETH (worth $ 222 million).

Hacking transaction details.  Source: Etherscan
Hacking transaction details. Source: Etherscan

However, a significant portion of the amount— $ 5.5 million – has not yet reached the hacker’s hands. A code in the smart contract has locked funds, preventing them from withdrawing.

There is a possibility that Warp Finance developers may override the contract recover the remaining funds. However, there are chances of this very slim.