Redemption, the “profitability optimization mechanism” in the Phantom blockchain (FTM), has been hacked. The price of their DeFi altcoin projects has more than tripled due to an attack using flash credits.
Instant Credit Attack on Redemption
According to the official announcement published by the Redemption DeFi protocol team, on April 18, 2022, it was subjected to a large-scale coordinated attack with flash credits. Redemption was alerted to this attack by PeckShield, a premium blockchain security provider. Peckshield said that unusual transactions have occurred in the Redemption blockchain.
Using Redemption for “profitable farming” based on FTM, the project confirmed the attack and advised its users to immediately remove liquidity, but not to sell local 2OMB and 3OMB assets. The team behind the project states: “2|3omb is currently the target of an arbitrage loan attack. You don’t need to sell your assets 2|3omb, but it is recommended to break any LP you may have.” Prices for both assets skyrocketed when the attack began: the cost of 2OMB and 3OMB coins tripled in a matter of minutes.
The altcoin DeFi project is being closed
Representatives confirmed the loss of 4 million 2OMB tokens, equivalent to 1,600,000 US dollars, at the peak of the attack. Now prices are returning to normal. Redemption stated that “they will publish an article on Medium as soon as they learn all the details about the Flash Credit arbitration attack against Redemption Swap.” At the time of writing, the 30 MB (30 MB) token has fallen by almost 24.4 percent and returned to its previous levels. After the attack, the token rose to $0.38.
According to Somanews, hacking in the field of DeFi continues. In fact, a new development for hacking the Ronin sidechain protocol worth $ 600 million has recently appeared. Lazarus, a North Korea—based cybercrime and anonymous hacker organization, linked it to the largest exploit in the history of decentralized finance (DeFi) – the $600 million hacking of the Ronin Sidechain protocol. The US authorities and the Blockchain Chainalysis security group have published reports stating that the infamous group is linked to the attack.