Arbitrum-based decentralized finance (DeFi) project Ede Finance admitted to manipulating prices after the protocol was hacked worth about $580,000.
On-chain security company PeckShieldEde Finance price manipulation And hacking revealed the behind-the-scenes of the event. Referring to the conversations that took place on the blockchain between Hacker and Ede Finance team members, the security company said, half a billion dollars behind the attack bargain pointed.
with white hat attacker claiming to be a hacker, critical gaps He said that he discovered it and thus seized the assets of 580 thousand dollars. Among the vulnerabilities claimed by the attacker are the easy access of user funds by third parties. can be eliminated took place.
On the other hand, the attacker, who stated that he knew more system vulnerabilities, in return for returning the assets. 10% reward demanded. This award is approx. 58 thousand dollars was worth it.
Ede Finance developers responded via blockchain:
Yes, we admit we made the wrong decision to manipulate the price. However, our aim was to blacklist those who previously abused the system, being aware that all transactions are recorded on the blockchain. We did not aim to embezzle user funds as this would leave a traceable record.
The team said it would later remove the smart contract that made this behavior possible. Moreover, agree to accept the terms of the award. and stated that they will cover the deficiency with their own funds. In addition, the team’s token asset in exchange for revealing other vulnerabilities to the exploiter. 5% of was offered.
The attackers did not keep their word, the team went the way of manipulation!
But as promised, the attackers had $580,000. 15% did not return the interrupted state to the team. According to this account, the attackers 493 thousand dollars was supposed to return it but the refund made with 334 thousand dollars remained limited. Unable to recover the desired amount after this move, the team tried to close the gap through price manipulation, and the price of EDE crashed.
In these events, the security arm of the Ede Finance team big business Emphasizing that this is done, the security company said that the security tests of the protocol in as little as 3 days stressed that it was completed.
With the effect of developments 54% the local token of the depreciating project, EDE, $2.37 from the level 1.07 dollars as much as it declined. EDE, at the time of writing 1.37 from dollars is being traded.