{"id":63372,"date":"2023-11-01T10:56:57","date_gmt":"2023-11-01T14:56:57","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=63372"},"modified":"2023-11-01T10:57:33","modified_gmt":"2023-11-01T14:57:33","slug":"onyx-protocol-2-million-loss-due-to-flash-loan-scam","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/onyx-protocol-2-million-loss-due-to-flash-loan-scam\/","title":{"rendered":"Onyx Protocol\u00a0$2 Million Loss\u00a0Due to Flash Loan Scam"},"content":{"rendered":"\n

DeFi project Onyx Protocol\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> falls victim to an assault and loses $2.1 million worth of ETH in a flash loan scam.<\/p>\n\n\n\n
\"Onyx<\/figure>\n\n\n\n

The decentralized finance (DeFi) project\u00a0Onyx Protocol lost roughly $2.1 million worth of Ethereum (ETH) tokens due to flash loan exploitation in the most recent security breach <\/a>incident.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Onyx Protocol Security Vulnerability<\/h2>\n\n\n\n

In order to perpetrate the theft, the perpetrator initiated their scheme by donating a small amount to the oPEPE market.<\/p>\n\n\n\n

With this initiative, they were able to borrow substantial sums of money from other markets with abundant liquidity.<\/p>\n\n\n\n

In addition, the donated funds were used as collateral during the borrowing procedure.<\/p>\n\n\n\n

The assailants then redeemed the borrowed funds and profited by exploiting the rounding issue.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

This is the most recent in a string of crypto exploits that caused Decentralized Finance to lose ETH tokens worth $2.1 million.<\/p>\n\n\n\n

Onyx Protocol Community Leader Statement<\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

Alex stated on\u00a0X, formerly known as Twitter, that they are aware of the issue and are working on a solution<\/a>.<\/p>\n\n\n\n

In the meantime, exploit attacks and crypto schemes targeting DeFi are on the rise, alarming the cryptocurrency community.<\/p>\n\n\n\n

Recently, Hundred Finance also disclosed a similar instance of exploit, in which it experienced a significant security breach on the Ethereum layer-2 blockchain<\/a> Optimism.<\/p>\n\n\n\n

According to a tweet from the protocol, the losses are close to $7.4 million.<\/p>\n\n\n\n

Moreover, the monthly report from CertiK Alert reveals that crypto enthusiasts lost over $32 million due to exploits, breaches, and scams in October.<\/p>\n","protected":false},"excerpt":{"rendered":"

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\u00a0Onyx 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 […]<\/p>\n","protected":false},"author":56,"featured_media":63376,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,73,11476],"tags":[12820,128,17037],"class_list":["post-63372","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-defi-news","category-hacks-and-scams","tag-defi-hacks-2","tag-ethereum","tag-onyx-protocol"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/11\/card.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/63372","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=63372"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/63372\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/63376"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=63372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=63372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=63372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}