Crypto News

Hacker Steals Balancer’s COMP Allowance in Second Attack Within 24 Hours

Balancer hacked twice within 24 hours, though this time the sum is relatively small.

We recently reported that the Balancer DeFit protocol suffered a $500,000 attack. Less than 24 hours later, a second attack claimed about $2,300 worth of Compound tokens (COMP).

Hao, an engineer at DeBank, tweeted that an attacker was able to fool the Balancer system into thinking he was owed a significant portion of the COMP tokens stored in the decentralized exchange’s pool.

The attack involved flash loans from both dYdX and Uniswap. The hacker loaned more than $33 million that was used to generate cTokens representing ownership in a Compound pool.

The attacker then transferred the cTokens to a Balancer pool. This triggered Compound into distributing the COMP accrued by the pool during its normal operation. The hacker then forced Balancer to update the pool’s balance, which at this point included all of the flash loaned money. The system thus believed that the hacker was entitled to a significant share of the pool’s COMP, despite not having held any money previously.

A call to withdraw the COMP and exchange it to ETH completed the hack, which netted a relatively small sum of about 10 COMP, worth $2,300.

Hao noted that the attack is similar to the $500,000 loss from earlier in the day. Like the first, this second attack relies on the peculiar way that Balancer manages its internal state.

The team has since pledged to make affected users whole. They will also compensate a researcher who reported on the vulnerability in May.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Write a Comment

Related Crypto News

Correlation Between Bitcoin Price and Stocks Reaches a New All-Time High
Bitcoin’s correlation to the S&P 500 has reached a new all-time-high, what does this mean for BTC price? Lately,...
Unless Bitcoin Breaks Through These 2 Levels, a Crash to $7,000 Is “Logical”
After attempting to rally through $9,500 this week, Bitcoin failed to sustain its bullish momentum yet again. As of...
Researcher Says Ethereum 2.0 May Be Delayed — Increasing Risk to ETH Bulls
One of the biggest Ethereum narratives over the past few months is ETH 2.0. For those that are unaware,...
84% of Crypto Twitter Is Buying or Holding Bitcoin, Boosting Bull Case
There have been many analysts over recent weeks arguing that Bitcoin is clearly at a market top. As NewsBTC...
Why One Outspoken Bitcoin Bull Recommends Holding More Gold Than BTC
Bitcoin and gold have formed a striking correlation throughout 2020, although this has shown some signs of degrading over...
TikTok Dogecoin Pump Purveyors Experience Their First Crypto Dump
This week, the altcoin named after an internet meme, Dogecoin, went viral on social platform TikTok. Users of the...

Featured Crypto News

Crypto Research Firm Identifies 3 “Big” Bitcoin Bull Run Catalysts
When analyzing Bitcoin, many investors cast aside fundamentals and only focus on the price action. Hence, as the cryptocurrency...
Switching Bitcoin to 100% ASIC Mining Could Increase Security 2000X
ASIC miners are the best option for Bitcoin network security well into the future, new research has found. The...
‘Significant’ Ethereum Rally Signals New Altcoin Season — Peter Brandt
Ethereum price saw a bullish breakout against Bitcoin on July 9 and veteran trader Peter Brandt believes this could...
Max Keiser: Bitcoin Will “Eviscerate” Competitors, Rally to $100,000 Per Coin
Altcoins have been all the rage over recent weeks, rallying dozens of percent as Bitcoin has stalled in the...
New York Court Rejects Bitfinex Appeal Over $850M in Lost Funds
New York’s Supreme Court has rejected Bitfinex and Tether’s appeal in the ongoing dispute between the firms and the...
Bloomberg Analyst: Key Metrics Show Bitcoin Should Rocket Towards $12,000
It’s been a slow past few weeks for the Bitcoin market. The cryptocurrency has effectively been range-bound for two...