Vladislav Sopov
The ELEPHANT token lost almost 90% of its value in a short period of time as its team urges holders not to sell
contents
- “Traditional price manipulation attack” results in $11.2 million loss
- “Funds are safe, don’t answer, don’t sell”
Elephant Money, a decentralized “yield farming” protocol on the BNB chain with native token ELEPHANT and stablecoin TRUNK, has suffered from an attack on its reserve.
“Traditional price manipulation attack” results in $11.2 million loss
According to a statement by cybersecurity team BlockSec, the Elephant Money DeFi protocol has fallen victim to a price manipulation attack that started with borrowed Wrapped Binance Coins (WBNB).
1/ The @ElephantStatus attack is a traditional price manipulation attack. We will use the following transaction (https://t.co/eY3HaWPWXE) to illustrate the process. @defiprime @bbbb @Mudit__Gupta @bantg
— BlockSec (@BlockSecTeam) April 12, 2022
In a series of operations, the attacker minted and redeemed TRUNK stablecoin to get more WBNB and BUSD. This resulted in an increase in ELEPHANT price and $4 million in profit for attackers per cycle.
Hackers performed this attack multiple times; A total of $11.2 million has been permanently lost, according to Elephant Money estimates.
Another senior DeFi security team, PeckShield, called this type of attack “forced investment.”
The Elephant Money team is already working on an emergency patch and new mechanisms that would prevent similar attacks from being repeated.
“Funds are safe, don’t answer, don’t sell”
Immediately after the attack, the price of ELEPHANT, which is Elephant Money’s liquidity reward token, fell almost 88% in a very short period of time.
Rip @ElephantStatus with the $40+ million exploit.https://t.co/cWDsOUgLHJ pic.twitter.com/Ce4iyOSB0Y
— zachxbt (@zachxbt) April 12, 2022
Despite a slight dip, the token is changing hands at $0.000000088508 at press time, down 77.1% from yesterday’s level.
At the same time, representatives of Elephant Money officially stated that no user funds are currently at risk. The only warning they issued was to refrain from panic selling.
As previously reported by U.Today, the DeFi segment has gone through a number of hacking attacks over the past few weeks. After the record-breaking hack of Axie Infinity’s Ronin network, the Sky Mavis team launched a $1 million bounty campaign.
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