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Money market NFT A reentrancy attack was made against the beta version of OMNI’s protocol.
The attacker merely took 1,300 ETH in internal testing funds, not actual money. The occurrence happened on July 10. A breach of the NFT protocol OMNI resulted in a loss of 1,300 ETH in worthless money; no user assets were compromised; only internal testing monies were taken.
How did the attack happen?
The team has put the protocol on hold as they look into what caused the attack. It appeared to be a hack connected to reentrancy, according to PeckShield later.
Later on, in their explanation of the exploit, the cryptographic security company BlockSec stated that the attack on the protocol was “caused by the old-school reentrancy of onERC721Received.”
Later, it revealed the flaws in the smart contracts and demonstrated how the attacker had borrowed ETH via NFTs. The ETH that was borrowed became a bad debt that didn’t have to be repaid.
A comprehensive postmortem on the attack, which generally happens after an attack, hasn’t yet been provided by the team.
They were lucky that just money used for internal testing was taken. Attacks on the DeFi and NFT space have occurred often, with criminals stealing hundreds of millions of dollars.
NFT and cyber attacks
The NFT space is still affected by attacks. Although sales have slowed, the NFT market is still one of the most active segments in the cryptocurrency industry. This has made it a top target for hackers, who look for opportunities to compromise systems and steal money wherever they can.
Such occurrences have happened quite a few times just this year. XCarnival, an NFT lending pool, lost around $4 million due to an attack, even though the hacker took a 1,500 ETH reward. Multiple phishing efforts that targeted Discord and other social media platforms were also made against the Bored Ape Yacht Club.
The Ronin Bridge hack, which resulted in the theft of more than $600 million, was the most notable incident in this area. Analysts surmise that hackers from North Korea were responsible for the event. However, North Korea has seen the value of its stolen cryptocurrency decline to a significantly lower amount due to the recent market fall.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
