Terra is a decentralized financial payment network that rebuilds the traditional payment stack on the blockchain. Luna is the reserve currency of the Terra platform. It has three core functions: i) mine Terra transactions through staking, ii) ensure the price stability of Terra stablecoins and iii) provide incentives for the platform’s blockchain validators.
Mirror Protocol suffered a hacking hacking is the process of using a computer to manipulate another computer or computer system in an unauthorized fashion. attack 7 months ago, but no one knew about it until now. The Mirror team has not reported the incident.
- A vulnerability in Mirror Protocol allowed a malicious actor to extract USD $90 million.
- A Terra user reported the hack last week.
- The flaw was quietly corrected just as UST was losing its parity.
Seven months ago, a decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. finance protocol based on the now-ancient blockchain Earth , Terra Classic was hacked for several million dollars. However, the incident had gone unnoticed until a few days ago.
Mirror Protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. a DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. protocol based on Earth was hacked in October 2021 for USD $90 million, as reported byThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain.. The hack was not reported at the time by those in charge of the platform. Nor did anyone from the former blockchain ecosystem notify what happened until last week.
According to the report, e he hacking was discovered by an analyst and a member of the Earth known under the name ” FatMan “who reported the finding in Twitter Thursday. FatMan who has been vocal in its dissatisfaction with the relaunching of the Earth said in a tweet that a mystery entity had exploited a vulnerability in the protocol to extract the money.
In one transaction, the attacker converted [USD] $10,000 into [USD] $4,300,000. In fact, this was done several times, generating a total of over $30 million. All of this went completely unnoticed by TFL and the Mirror team and community. This is the first time this attack has been revealed.
Two coffees later, as I was about to give up, I found this. Hold on… What’s going on here? A single transaction from October 2021 unlocking one position over and over again – and it actually executed. Here’s the transaction: https://t.co/2pbiwqKWNT (9/12)pic.twitter.com/lklZHIYQqV
– FatMan (@FatManTerra) May 27, 2022
How did the hacking happen?
According to the findings, the attack was carried out thanks to a vulnerability in Mirror Protocol that allowed use a list of duplicate IDs to unlock more collateral collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. than is available to a user. The flaw resulted in the perpetrator was able to withdraw funds from the protocol without any authorization.
Mirror Protocol , was a protocol that allowed users to take long or short a trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit. positions in technology stocks using synthetic assets, as explained by The Block .
Every time someone wanted to bet against a stock in Mirror I had to block tokens as collateral including UST, Luna Classic (LUNC) y mAssets, durante un mínimo de 14 días. Once the transaction was completed, users could unlock the collateral to return the funds to the wallet. This mechanism worked by means of identification numbers generated by smart contracts.
However, due to a faulty code, the locking contract in traditional finance, a contract is a binding agreement between two parties. In cryptocurrencies, smart contracts execute functions on the blockchain. of the Mirror allegedly failed to verify when someone used the same ID more than once to withdraw funds. All of this allowed the hacker to drain USD $90 million from the platform, as reported byThe Block. The firm security BlockSec corroborated the findings of the hack.
— BlockSec (@BlockSecTeam) May 29, 2022
The platform a place to buy, sell and store cryptocurrency Mirror was built on Earth which collapsed earlier this month after its main stablecoin, UST, lost its parity with the U.S. dollar, dragging its sister token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. LUNA down with it. The blockchain has now been relaunched as the Earth 2.0 while the original chain continues to exist under the name of Terra Classic .
7 meses y un renacimiento de Terra más tarde
As noted byThe BlockThe incident is strange because of the long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. period of time that has elapsed since the incident occurred. hackeo and disclosure of these events. It’s curious especially because of the public notoriety of blockchain logs; plus, projects generally seek to quickly report security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. events in the interest of transparency.
In addition, the report reveals that the developers of Mirror Protocol at some point knew of the vulnerability which was exploited by the hacker in October, since they fixed this bug a few weeks ago. The implementation of the parchment coincided with the moment when the UST was beginning to disassociate itself from the as pointed out byThe Blockwhich then imploded the ecosystem of Earth .
As of the time of editing, the team of Mirror has not commented on these reports or made an official announcement about the attack, and it is unknown whether the protocol is aware of the theft in question.
While the time lag for public awareness of a hacking attack on Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. is curious and unusual, it’s not the first time it’s happened. A few months ago, another much larger hack went unnoticed. In March, the sidechain Ronin Network a network refers to all nodes in the operation of a blockchain at any given moment in time. of the popular gameAxie Inifinitywas exploited for more than USD $600 million But the incident only came to light a week later, when users tried unsuccessfully to withdraw their funds.
- Do Kwon announces launch of Terra 2.0 on mainnet an independent blockchain running its own network with its own technology and protocol.
- South Korea to assess exchanges’ responsibility in Terra collapse
- Prior to UST, Do Kwon created another stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. project that also failed: report
Article by Hannah Estefania Perez / DiarioBitcoin
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