TempleDAO, a decentralized finance (DeFi) yield farming protocol, lost over $2.34 million in a hack on Oct. 11.
The exploit was announced by Twitter user Spreek, who shared that the DeFi platform had been hacked, along with a snapshot of how the stolen funds were moved.
[email protected] exploited for $2 million it seems pic.twitter.com/k0nBLSoxnx
— Speak (@spraakaway) October 11, 2022
Blockchain security firms BlockSec and PeckShield confirmed in a series of tweets that the exploit did indeed take place. BlockSec said the root cause of the attack was “insufficient access to control the MigrateStake feature.”
TempleDao @templedao was attacked. The main cause is insufficient access control on the MigrateStake feature.https://t.co/eUwSMkZrEt pic.twitter.com/zXBUwzQ2Oy
— BlockSec (@BlockSecTeam) October 11, 2022
PeckShield claimed that the exploit funded Simpleswap and transferred 1,831 Ether ETH ($2.34 million) to a new address.
#PeckShieldAlert Seems like @templedao was taken advantage of. Funded by SimpleSwap, the exploiter has already transferred $1,831ETH (~$2.34M) to a new address 0x2B63d…B5A0 @peckshield https://t.co/bOyOARyyxY pic.twitter.com/SVEm8o95U6
— PeckShieldAlert (@PeckShieldAlert) October 11, 2022
Stax, a decentralized application powered by TempleDAO, explained in a tweet:
“At 13:08 UTC time, a total of 321,154 xLP tokens were withdrawn from the xLP staking contract. These tokens were exchanged for exactly 1,418,303 $TEMPLE and 1,262,438 $FRAX. 1,418,303 $TEMPLE were sold for FRAX.”
Stax suggested that only one agent was responsible for the hack, allegedly caused by “a missing OnlyMigrator check,” confirming BlockSec’s tweets. Meanwhile, Stax warned users against further deposits into STAX contracts until remedial action is taken, saying:
“The dApp has been shut down to avoid accidental use. This is now under control and the exploiter cannot do any further damage. Corrections will be made for all affected users.”
TempleDAO is now working with Binance to investigate as the exploit’s address was linked to a Binance account. Staxx said:
“We are following Binance and will initiate a white hat bounty for the exploiter. We increase our existing bounty with Hats Finance and set up secure communication if the hacker decides to return funds and get a legal bounty. Details to follow.”
Before the exploit, the total value locked in the TempleDAO log was approximately $57 million, according to DefiLlama. The exploit amounted to an estimated 4% of the protocol’s holdings.
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