A security breach on Base, a Layer 2 blockchain, has led to the theft of approximately $1 million. The exploit, which involved manipulated Wrapped Ether (WETH) contracts, was first reported on October 25 by blockchain security firm Cyvers Alerts.
According to Cyvers Alerts, the attacker exploited a weakness in the blockchain’s oracle system to determine WETH’s price. This system relied on a single trading pair with limited liquidity of around $400,000, making it vulnerable to price manipulation. The hacker’s initial transaction siphoned $993,534 from the blockchain, followed by additional exploits totalling $455,127.
Most of the stolen assets were moved to the Ethereum network, with approximately $202,549 routed through the privacy-focused platform Tornado Cash to obscure the funds’ trail.
Hakan Unal, senior SOC lead at Cyvers Alerts, commented that the attack highlights the risks of using a low-liquidity, single-source oracle, noting that more diversified oracles with higher liquidity are essential for enhanced security. “A more reliable, diversified oracle with higher liquidity could prevent similar attacks,” he reportedly stated.
Unal added that responsibility for the breach may rest with the entity managing the unverified contracts that failed to implement robust oracle verification.
The attacker remains unidentified, as of press time.
The recent exploit adds to growing security concerns in the DeFi sector. UwU Lend, a well-known DeFi lending platform, was recently hacked in a similar manner, resulting in a loss of over $19.5 million. The attacker successfully manipulated the platform’s price oracle to execute the attack.
Meanwhile, another blockchain security platform, Scam Sniffer, has warned of a new phishing scam targeting Sony’s blockchain platform, Soneium, through fake Google ads to deceive users and drain their crypto wallets. The scammers have allegedly manipulated Google’s search results, placing a malicious link at the top when users search for “Soneium.”
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