Avraham Eisenberg, the trader behind the Mango Market hack, has failed in his attempt to exploit Aave. He tried to manipulate Aave’s lending policy by borrowing $40 million in CRV tokens and selling them off, causing the token’s price to plummet. The trader had earlier announced the plan via his Twitter account.
Gauntlet network tweeted, saying the plan was not successful. Avraham also lost millions in the process. The attack had a minor effect compared to what would have been lost if the trader had succeeded. Blockanalitica reveals the debt Aave incurred to be $1.65 million.
$CRV fell from $0.625 to $0.464 on Tuesday due to the incident, but it has quickly recovered and is trading at $0.6219, according to CoinMarketCap.
This is not Eisenberg’s first attempt to exploit a protocol. His first target was Mango Markets, a DeFi trading platform on Solana. He drained $116 million from the protocol by manipulating the price of the native token, $MNGO. The hacker deposited 5 million USDC, opened a long position, made profits, and wiped out the protocol’s treasury, leaving a deficit. The attack led to a pause in deposits in Mango Markets.
Following the incident, Aave’s Decentralized Autonomous Organization (DAO) drafted a governance proposal. The proposal includes plans to update the protocol so that the incident does not happen again.
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