The token price crashed after the decentralized finance (DeFi) protocol Conic Finance (CNC) was hacked and lost $3.2 million.
DeFi protocol Conic Finance Friday, 21 July at 13.40 CEST was hacked in the waters. Unidentified assailant approx. 3.2 million dollars worth 1,700 Ethereum (ETH) rang. Hack case belongs to platform from a systemic originated. Native token of the platform CNC in a short time to 40% lost value close.
On-chain security firm BlockSec According to the statement and data made by flash loan through 20,000 stETH took. The person who transferred this large amount of assets to Conic, “Reentrancy attack” from the platform’s liquidity pools by utilizing a method called 1,700 ETH managed to transfer it to his own wallet.
Making a statement on the subject, BlockSec security services director Matthew Jiangstated that the attacker used the stETHs he received with a flash loan to increase the profit rate.
As confirmed by the team, only Ethereum Omnipool pool affected.
Statement from the team
On social media after the attack in the statement Conic Finance team stated that the researches are continuing. The team stressed that they will share updates frequently:
We are currently investigating an exploit involving ETH Omnipool and will post updates as soon as possible.
What is a reentrancy attack?
What hackers prefer in this case Reentrancy attack (re-entry attack), Ethereum and it is one of the most common attacks on other blockchain platforms. This attack is used by an attacker to cause the software to perform an undesired action. from a flaw in the code design of the software occurs when it is used.
This type of attack is usually recursive occurs by calling the withdraw function. Since the balance update on the contract occurs after the withdrawal, the attacker the same action over and over can call, and that’s balance of the contract can discharge.
According to CoinGecko data, CNC soon close to 40% down 6.08 dollars from the level $3.76 as much as it declined. The CNC, which recovered a little later, was at the time of writing. from $4.29 is being traded.