Hacker who hacked Mango Market lost millions of dollars while trying to hack Aave

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The attacker behind the October Mango Market hack appears to have lost millions of dollars in a price manipulation maneuver in an attempt to hack the Aave DeFi protocol.

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Fraudster under the nickname “Avraham Eisenberg” borrowed 40 million CRV tokens on the decentralized lending platform Aave to sell them instantly on the market. As a result of his manipulation, the price of CRV should have plummeted, resulting in the liquidation of millions of short positions.

However, it didn’t work. The price of CRV fell from $0.53 to $0.41, but then quickly recovered, rising to $0.71. A few weeks ago a hacker published his plan to exploit the Aave vulnerability. In his opinion, this scheme should have worked and had no weaknesses.

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Neither Aave nor the Gauntlet financial modeling platform used by Aave took any precautions to prevent the exploit. As a result, Aave lost only $1.6 million, which Gauntle will cover from its fund. In the event of a successful attack, the amount of losses would be much greater.

“The attempt to squeeze CRV out of Aave was unsuccessful and unprofitable. The protocol was affected by a much smaller amount,” Gauntle said.

Hours after the failed CRV price manipulation attempt, the company developed an Aave governance proposal to prevent a similar exploit. However, some members of the community reacted negatively to Aave’s inaction after the hacker published a hacking plan.

Recall that last month, the Mango Market trading platform lost $114 million as a result of a hacker attack.

Source: Bits

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