In one of the world’s biggest cyberattacks, $16 million dollars worth of cryptos were stolen in the blink of an eye.
Shocked that the funds were snatched from right under their noses, the founders took immediate action, searching for any clues they could find on the attacker, hoping to catch the thief before more harm was done.
However, news of the hack was rapidly spreading.. This meant investors began pulling out their money. The founders needed to find an answer before the entire fund collapsed
How this hack happened is not only insane but will help you identify scams in the future…
Food for thought
Honestly, he may be able to keep it. It seems that the protocol was designed in a way that this action would be possible. It was an app that allowed and paid users to arbitrage coins. There was no disclosure or any kind of terms of service that said a Flashloan couldn’t be used in the app. So really it should be on the founders and developers to repay the money to holders if he doesn’t want to return it. Code is law means you are responsible for DYOR because the code is available for inspection and the devs should have had proper protection written for instances that included a flash loan attack. It is not illegal to take out and use a flashloan for any project if you find an opportunity to use that money in a way to make more money. And it’s not easy to find these opportunities anymore because they were so popular a few years ago most devs starting putting in safe guards and whale protection for the benefit of retail investors. I dont blame the kid. I proly would have just kept 25percent amd gave the rest back to devs and let them open their wallets to finish it off so they would remember next time to code better. But anyone would do this if they were aware how to use a flashloan and make money. Maybe we wouldn’t take the whole damn 16m, but we would def skim off some profits in every project that you could. Its actually exciting to set up the whole flashloan and watch yourself borrow hundreds of thousands of dollars with no collateral only gas fees and watch the program make all the buys and sells and reward claims and then watch all the money go back to where it came from and you get to keep all the profits. It’s fucking awesome. But with great power comes great responsibility. Lol. Kids too young for this kind of power, looked what’s happened. Lol. But I still think it falls more on the developers and coders of the project since he was able to do this with a simple flashloan using the parameters set by the contract devs. Just some food for thought here.
Source Max Maher, Chad Abernathy
The grey area of flash loans … Probably one of the most insane crypto hack stories ever.
