On May 28, an unknown person hacked the Ede Finance DeFi protocol on the Arbitrum network for $580,000. He left an on-chain message claiming that the developers manipulated prices.
Seems @ede_finance has been exploited for around $580,000
This wallet has been sending smalls funds to the ELP-1 pool in Arbitrum and withdrawing large amounts immediately afterhttps://t.co/h8eUaPeHXk pic.twitter.com/nFPwrNMtsh
— Res (@resdegen) May 29, 2023
The cracker called himself a “white hacker” and declared good intentions to expose the project administrators. According to him, the main team of the protocol had a backdoor that allowed them to liquidate any user’s transaction by artificially changing the asset’s price.
The hacker added that he is ready to return the stolen funds minus 10% as a reward if the developers admit to price manipulation. He also noted additional vulnerabilities of the project.
On May 30, representatives of Ede Finance sent a counter message admitting their guilt.
“Yes, we admit that we made a rash decision to manipulate the price. However, our intention was to blacklist those who had previously exported the system, fully aware that all transactions are recorded on the blockchain. We did not aim to misappropriate user funds, as this would leave a traceable record, ”the project team said.
The developers promised to remove the smart contract that allowed changing the price. They agreed to terms for the return of the stolen assets, adding that they would cover the difference from their own funds.
Ede Finance also offered the hacker 5% of the distribution of protocol command tokens in exchange for information about other vulnerabilities.
According to CoinGecko, the rate of the native EDE protocol token has fallen by 46% over the past 24 hours, from $2.43 to $1.29.
Recall that in May 2023, unknown people withdrew assets worth $6 million from the Deus Finance DeFi protocol.
In the same month, hackers attacked the Jimbos Protocol project, as a result of which unknown persons withdrew more than $7.5 million from smart contracts.
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