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- DeFi space often sees varied hacks and frauds which sometimes take time to get discovered.
- A Twitter user revealed seven months after the hack that Mirror Protocol got attacked for approximately $90 Million on Terra Classic in October last year.
- The on-chain data does highlights that the attacker managed to unlock UST funds several times from the protocol.
Attack Was Hidden Until A Few Days Ago
Frauds and exploits are not uncommon in the world of Decentralised Finance (DeFi) but one of them actually took seven months to get discovered. Mirror Protocol went through a $90 Million exploit in October last year, which was not noticed until now.
Recently a Twitter user by the name FatMan disclosed for the first time on May 26, 2022, i.e. seven months following the hack, that Mirror Protocol got attacked for approximately $90 Million on Terra Classic on October 8, 2021.
He got to know about the hack by pure serendipity, the unethical actor carried out the theft of $89,706,164.03 from the protocol thanks to an exploit that facilitated them to unlock collateral from the lock contract over and over at minimal cost and zero risk, according to FatMan.
If we look at the on-chain data of Terra Classic, it does disclose that the hacker was able to unlock UST funds multiple times from the protocol within a single transaction, paying just around $17.54.
Mirror Protocol is basically a decentralized application (DApp) that enables the creation of virtual synthetics which track the price of real-world assets, for instance, stocks.
Mirror’s primary contracts were deployed on Terra Classic, but its assets are available on Binance Smart Chain (BSC) and Ethereum.
The glitch was found by the Mirror community members on May 17 and had been quietly fixed by Mirror developers on May 9. However, the developer team made no such comment if the bug was noticed already.
According to FatMan, who thinks there is no compelling evidence highlighting the entity responsible for the hack was an insider.
Seven months is quite a long time for a DeFi hack to get discovered. Though this is not the first time, as a lot of DeFi hacks took some time to be found out.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
