Tuesday, November 29, 2022
 

New Free DAO Crashes by 99%, Losses $1.2M to Flash Loan Attack

  • New Free DAO suffered a flash loan attack with $1.2M in losses.
  • NFD token has declined by 99% as a result.
  • Flash loan attacks are becoming rampant in the crypto industry.

Blockchain security researcher CertiK revealed on Twitter that a vulnerability known as New Free Dao – (NFD) had been exploited through a flash loan attack, which resulted in the attacker acquiring 4481 WBNB (about $1.25 million) and triggering a 99% decline in the price of the token. The post added that the perpetrator has ties to a Neorder assault that occurred around four months ago, during which they stole 930 BNB.

For the uninitiated, NFD is a DeFi token that is built on the Binance Smart Chain (BSC). It was intended to provide a number of functions and was designed primarily for use in NFT transactions. The fact that the project is not substantial while having a volume of over one million US dollars that is reportedly now gone is the most fascinating aspect.

Misuse of the security provided by smart contracts is known as a “flash loan” exploit. This kind of attack often involves a malicious actor borrowing uncollateralized cash from a lending protocol and manipulating the price of a specific asset in order to increase the asset’s value.

As a result of the low risk, low cost, and high reward that come along with them, hackers have been using flash loan attacks more and more frequently. On Wednesday, the lending system Nereus Finance, which is built on the Avalanche blockchain, was the target of a cunning flash loan assault, which resulted in a loss of $371,000 in USD Coin (USDC).

Previously, Cream Finance was victimized by three separate flash loan scams, the most recent of which resulted in the theft of $130 million. One of the larger heists, involving a flash loan exploit, cost PancakeBunny $200 million.

  • New Free DAO suffered a flash loan attack with $1.2M in losses.
  • NFD token has declined by 99% as a result.
  • Flash loan attacks are becoming rampant in the crypto industry.

Blockchain security researcher CertiK revealed on Twitter that a vulnerability known as New Free Dao – (NFD) had been exploited through a flash loan attack, which resulted in the attacker acquiring 4481 WBNB (about $1.25 million) and triggering a 99% decline in the price of the token. The post added that the perpetrator has ties to a Neorder assault that occurred around four months ago, during which they stole 930 BNB.

For the uninitiated, NFD is a DeFi token that is built on the Binance Smart Chain (BSC). It was intended to provide a number of functions and was designed primarily for use in NFT transactions. The fact that the project is not substantial while having a volume of over one million US dollars that is reportedly now gone is the most fascinating aspect.

Misuse of the security provided by smart contracts is known as a “flash loan” exploit. This kind of attack often involves a malicious actor borrowing uncollateralized cash from a lending protocol and manipulating the price of a specific asset in order to increase the asset’s value.

As a result of the low risk, low cost, and high reward that come along with them, hackers have been using flash loan attacks more and more frequently. On Wednesday, the lending system Nereus Finance, which is built on the Avalanche blockchain, was the target of a cunning flash loan assault, which resulted in a loss of $371,000 in USD Coin (USDC).

Previously, Cream Finance was victimized by three separate flash loan scams, the most recent of which resulted in the theft of $130 million. One of the larger heists, involving a flash loan exploit, cost PancakeBunny $200 million.

 

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