The New Free DAO DeFi protocol suffered several instant loan attacks, after which the NFD token price collapsed by 99%.
New Free DAO is a DeFi project powered by Binance Smart Chain (BSC). As tweeted by blockchain cybersecurity company CertiK, the attacker took advantage of an unverified smart contract and used the “addMember()” function to add himself as a member. In this way, the hacker carried out three instant loan attacks.
He first borrowed 250 WBNB worth $69,825 and exchanged all funds for NFD tokens. The hacker created several more contracts to claim rewards from the distribution of tokens. Then he exchanged the received reward for WBNB, as a result he received 4,481 BNB. From these funds, the attacker returned the loan (250 BNB) and exchanged 2,000 BNB for 550,000 BSC-USD. Some time later, the attacker withdrew 400 BNB to the Tornado Cash mixer.
Certik experts reported that the hacker who attacked the New Free DAO may be related to the May attack on the Neorder (N3DR) project. The blockchain security company, Beosin, has also suggested that the same people may be behind these attacks.
Team Beosin
discovered another vulnerability in the New Free DAO protocol that could be used for another type of instant credit attack. We are talking about price manipulation, since it is calculated in pairs using the USDT stablecoin balance.
Such attacks are becoming more and more popular among hackers. Recently, the Nereus Finance protocol, powered by the Avalanche blockchain, suffered from an instant loan attack. The project lost $371,000 USDC stablecoins. In April, the same attack was carried out on the Inverse Finance credit service, as a result of which the attackers withdrew $15 million worth of crypto assets. In June, hackers repeated the attack and stole $1.2 million in BTC and USDT.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
