Key Takeaways
- In a DeFi hack, almost $31 million in various cryptocurrencies were taken from MonoX.
- MonoX is a decentralised exchange that provides liquidity pools where traders can deposit their tokens and get tokens in exchange for providing liquidity.
- Wrapped ether (WETH) was worth $18.2 million, and polygon was at $10.5 million (MATIC). WBTC, LINK, GHST, DUCK, MIM, and IMX were among the other tokens seized.
The price of MONO tokens was fraudulently inflated, allowing the attacker to utilize the tokens to acquire other assets in the pools at substantially lower rates, according to MonoX.
“First and foremost, we want to express our deepest regret for the issue, and we guarantee you that our entire team and partners are working on it right now. We place a high priority on the security of our users’ funds, and we have had many security audits and a security advisory firm that works with us on a regular basis. However, we were still exploited, unfortunately, “In a statement, MonoX said.
The money was taken from two different blockchains: Ethereum and Polygon. Polygon, originally known as Matic, is a proof-of-stake blockchain that serves to relieve some of the strain on the Ethereum network.
Igor Igamberdiev, a user, noticed that different assets handled by the DeFi protocol were acting abnormally. More particular, the assets were rapidly moving to the same address, jeopardizing the protocol’s liquidity. MATIC, Wrapped Ether, Wrapped Bitcoin, LINK, GHOST, DUCK, MIM, and IMX are among of the stolen assets.
Will the lines of communication be reopened?
MonoX acknowledged in a recent Tweet that it was an opportunity to “speak to the hacker.” When smart contracts are exploited, this is a popular strategy, however, it does not guarantee a response. Furthermore, it begs the question of whether the culprit is external or inside. These kinds of incidents are usually troublesome for reasons other than financial loss.
Furthermore, the MonoX token’s value on exchanges is gradually declining. That is to be expected in the aftermath of such a security breach. After their money has been taken, people find it difficult to trust platforms and companies again. Although there has been a serious breach of trust in this project, it does not mark the death of MonoX. Affected consumers can only hope that the issue is fixed as quickly as possible.
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