Crypto lending platform Moola Market recovers a majority of the exploited funds. The market was exploited via price manipulation of its native token, MOO on October 18. This resulted in the platform losing upto $9 million.
The platform tweeted that it was investigating the incident and had paused all activity. The platform also added that it contacted legal authorities and offered a bug bounty to the attacker if they returned the funds within 24 hours.
An analysis of the exploit shows that the attacker took advantage of the low liquidity of MOO. The attacker deposited MOO as collateral to borrow CELO.
The borrowed CELO was then used as collateral to buy more MOO. This process was repeated a few times to drive up the price of MOO. The attackers managed to increase the price of MOO.
With this increased token price, the attacker managed to buy $6.5 million worth of CELO, $0.6 million worth of MOO, as well as $765,000 of cEUR and $644,00 of cUSD.
Five hours after the news of the exploit was confirmed, the protocol tweeted that they had recovered 93% of the exploited funds, while the attacker seemingly kept the rest, which amounted to about $500,000.
The protocol has also tweeted that a governance vote is on-going for a proposal which does not allow MOO to be further used as collateral to mitigate future risk and avoid further exploits such as this.
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