The DeFi protocol confirmed an exploit days after it warned users about a vulnerability affecting certain liquidity pools.
Photo by Michael Dziedzic on Unsplash
Posted Aug 27, 2023 at 7:22pm EST.
Automated Ethereum market-maker Balancer lost nearly $900,000 worth of crypto to an exploit related to a critical vulnerability disclosed last week.
Blockchain security expert Meir Dolev revealed details of the exploiter’s transactions, which took place on Aug. 27. On-chain data shows that the address in question received two transfers from maker stablecoin DAI, bringing their total balance to $894,289 at the time, according to the letter.
The attacker continues his operation, about $900,000 affected, more than $600,000 has been moved to this address
0xB23711b9D92C0f1c7b211c4E2DC69791c2df38c1 pic.twitter.com/inNqH4zel2
— Meir Dolev (@Meir_Dv) August 27, 2023
The Balancer team said it was unable to pause the affected pools, despite being aware of the exploit related to the vulnerability. The team urged users to withdraw their funds from the affected liquidity pools to prevent further exploits.
Although Balancer’s initial disclosure of the vulnerability prompted users to quickly withdraw significant amounts of capital, and the affected pool of assets dropped to just 0.08% of its total locked value, some market participants questioned why the protocol first flagged the issue.
Why do logs leak vulnerabilities to the public via Twitter?
That’s like asking hackers to exploit…
It’s sad that Balancer is affected, but overall it’s a small amount
The DeFi Wild Wild West continues🤠
— Andy 🦇🔊 (@ayyyeandy) August 27, 2023
The vulnerability affects boosted pools on Mainnet, Polygon, Arbitrum, Optimism, Avalanche, Gnosis, Fantom and zkEVM.
Although the Balancer team has yet to release a full post-mortem analysis of the vulnerability, Web3 testing firm Hacken said the root cause has been identified and the team is working on it.
“But at the moment it is impossible to guarantee the complete security of client funds. To avoid potential casualties, immediately withdraw affected LPs.” said Hack on X
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