The post Hackers Looted $1 Million from Blockchain-based Levana Protocol appeared on BitcoinEthereumNews.com.

The blockchain-based Levana protocol suffered a major loss due to exploitation. The administrators of the protocol posted on X, formerly Twitter, that the exploit had drained about 10% of the reserves. The seven wallets attached to the oracle are affected. These wallets are attached to an oracle that connects to external systems, permitting them to trigger baked-on real-world inputs. The administrators said reports on the attack suggest the attacker took advantage of congestion on the Osmosis blockchain when the market was under high stress created artificially by an exploit. It permits the hackers to make changes with prices which allows the exploit. Reason Behind the Crypto Hack on Levana Protocol As per Levana, a bug in the Osmosis fee market code meant that during the time of congestion, “the provided gas price was generally insufficient for making trades or performing ongoing bot maintenance activities.” Levana said that the crypto attack took place between December 13 and December 26. During this time the congestion was high which denied normal customers the ability to transact and also the protocol bots were not able to interact with its oracle named Pyth. It enabled the attackers to perform the attack and drain out the liquidity pools. The team highlighted that Pyth was the main part of the attack but there is no known vulnerability in it. The team said, “It behaved exactly as expected.” The team also emphasizes that from December 17 till December 26, the protocol suffered a distributed denial-of-service attack. That specifies a notable portion of the Levana engineering team was dedicated to dealing with that attack, which was generating instability on the platform. “It’s unclear if there’s any relationship between the congestion attack and this string of DDoS attacks,” the team said. “It’s common practice for DDoS attackers to use the…

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Filed under: News - @ December 29, 2023 7:24 pm