Another Major Crypto Hack, But All Is Not Lost

October 19, 2022

Moola Market tweeted that it was investigating the incident and had suspended operations on its platform.

Hacken, a Web3 security firm, investigated an exploit and revealed $9.1 million was stolen from the CELO blockchain-based platform.

Hacken explained, the attackers funded the account with CELO tokens and used it to buy a large amount of MOO tokens.

Due to low liquidity, the $MOO price started to increase, at the same time increasing the collateral value

The attacker then borrowed $CELO and used $MOO as collateral, after that, $CELO was exchanged for $MOO again, and the price of $MOO increased steadily.

By repeating this cycle, the price of the $MOO token increased from $0.018 to $0.65. A huge loan was taken out at these inflated prices.

Moola Market tweeted it is contacting law enforcement and is willing to negotiate a bounty. Later they updated, “Following today’s incident, 93.1% of funds have been returned to the Moola governance multi-sig.”