Ola Finance Suffers $3.6M Re-Entrancy Attack
- The attack happened on the Fuse Network, one of the many blockchains Ola operates on, and took advantage of a vulnerability in one of Ola’s smart contracts.
- The project has paused all activities on Fuse Network, and noted the attack has not affected its services on other blockchains, which remain operational.
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Decentralized lending protocol Ola Finance has become the victim of a re-entrancy attack, which saw a hacker steal approximately $3.6 million worth of crypto from the project, the startup said on Twitter on 31 March.
According to the announcement, the attack happened on the Fuse Network — one of the many blockchains Ola Finance operates on — which prior to the attack had a total value locked of around $13 million. Shortly after detecting the attack, Ola quickly paused the use of its lending protocol on Fuse Network, but not before the hacker was able to get away with $3.6 million worth of crypto tokens. The project noted that its services on other blockchains were unaffected by the exploit, and will remain operational.
Blockchain security firm PeckShield, which worked with Ola to identify the exploit, said the hacker took advantage of a re-entrancy bug in one of Ola’s smart contracts. The individual first used his own funds — transferred from Tornado Cash so they remain untraceable — as collateral to borrow funds from Ola. He then took advantage of the vulnerability within the protocol to remove his collateral without repaying the loan, a process which was repeated several times on other Ola pools.
The attacker then used Fuse Network’s own cross-chain bridge to transfer the stolen funds to other blockchains, and currently holds $3 million on Ethereum, and another $637,000 on BNB Chain. Ola said it is still investigating the incident, and will come up with a post-mortem of the hack in the near future.
- Popular Telegram bot Unibot, which is used to snipe trades on Uniswap, became a victim of a token approval exploit earlier today, when it was switching to a new router.
- After confirming the exploit, Unibot assured users that their keys and wallets were safe, and that the project will compensate all affected users.
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- DeFi protocol Balancer confirmed it was exploited almost a week after disclosing a critical vulnerability affecting several of its boosted pools.
- The platform did its best to mitigate some of the risks but was unable to pause the affected pools, and an estimated $980,000 in DAI were stolen in an attack.
- A cyber security incident at bankruptcy service provider Kroll has resulted in the exposure of “non-sensitive” customer data for claimants involved in the FTX and BlockFi cases.
- Both companies confirmed that account passwords, systems, and funds remained safe, but warned customers to be on the lookout for phishing scams.