DeFi project Onyx Protocol falls victim to an assault and loses $2.1 million worth of ETH in a flash loan scam.
The decentralized finance (DeFi) project Onyx Protocol lost roughly $2.1 million worth of Ethereum (ETH) tokens due to flash loan exploitation in the most recent security breach incident.
According to reports, the wallet address of the Onyx protocol exploiter has a balance of approximately $2.1 million worth of 1,164 ETH, which scammers exploited.
Onyx Protocol Security Vulnerability
In order to perpetrate the theft, the perpetrator initiated their scheme by donating a small amount to the oPEPE market.
With this initiative, they were able to borrow substantial sums of money from other markets with abundant liquidity.
In addition, the donated funds were used as collateral during the borrowing procedure.
The assailants then redeemed the borrowed funds and profited by exploiting the rounding issue.
The theft was simple because the oPEPE market had just been established five days prior and had no funds, which was advantageous for the attackers.
Before exploiting the oPEPE smart contract on Onyx, the attacker created a flash loan of 4,000 ETH from Aave, an open-source liquidity protocol, and exchanged it for the meme coin PEPE.
This is the most recent in a string of crypto exploits that caused Decentralized Finance to lose ETH tokens worth $2.1 million.
Onyx Protocol Community Leader Statement
Alex, the leader of the Onyx Protocol Community, verified the theft and stated that the team has now patched the vulnerability and is working to proceed.
Alex stated on X, formerly known as Twitter, that they are aware of the issue and are working on a solution.
In the meantime, exploit attacks and crypto schemes targeting DeFi are on the rise, alarming the cryptocurrency community.
Recently, Hundred Finance also disclosed a similar instance of exploit, in which it experienced a significant security breach on the Ethereum layer-2 blockchain Optimism.
According to a tweet from the protocol, the losses are close to $7.4 million.
Moreover, the monthly report from CertiK Alert reveals that crypto enthusiasts lost over $32 million due to exploits, breaches, and scams in October.
