$90 million stolen from Mirror Protocol DeFi project on the old Terra blockchain

More than 7 months ago, attackers who discovered a bug in the Mirror Protocol smart contract stole over $90 million. This hack was accidentally discovered 2 days ago.

A crypto enthusiast with the nickname FatMan, who is a member of the Terra community, published a tweet in which he spoke about the discovered error. Later, the information was confirmed by representatives of BlockSec.

Judging by the published data, the scammers began withdrawing funds back in October last year. Using the Mirror Protocol, they could trade technology stocks by going long or short with synthetic assets. At the same time, it was necessary to block a certain amount in cryptocurrency, using a choice of UST, LUNA and mAssets, for 2 weeks.

Upon completion of the transaction, the collateral could be withdrawn to the wallet using the identifier generated by the smart contract. However, due to an error in the code, it was possible to withdraw blocked funds several times using the same identifier. The scammers took advantage of this.

Unidentified Mirror Protocol users withdrew a total of $90 million worth of assets. The reason the hack went unnoticed is because there was no active scanning of the Terra blockchain for problems. Also, the project did not have an interface that allows you to see the total amount of tokens in pledge.

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