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Osmosis loses $5 million as a result of a bug

The last few weeks have not been easy at all for cryptocurrency exchanges. Not only have they suffered the full brunt of the consequences of falling prices, but they have also found themselves in the sights of hackers. The last digital asset exchange to have had the unfortunate experience of this is Osmosis. Hackers managed to steal a total of $5 million.

Hackers making cryptocurrency fraud using virus software and computer interface. Blockchain cyberattack, ddos and malware concept. Underground background.

A night attack

Osmosis is a decentralized exchange that was founded in 2011. Unlike other exchanges, such as FTX or Coinbase, it is relatively young. However, this does not prevent him from being among the favorite platforms of investors. Recall that last October, it launched its own token, the OSMO, which is a great success with users.

With its token, Osmosis has gained a certain notoriety in the ecosystem of decentralized exchanges. The proof of this is that she has accumulated more than $212 million in TVL (total value blocked). If it continues to seduce customers, it also attracts the attention of hackers, unfortunately.

On Wednesday, June 8, the stock exchange was the victim of an attack carried out by anonymous hackers who used a bug in order to draw $5 million from his funds. The attack took place at midnight. It took place in a short time and, despite the resistance and security of the stock exchange system, the latter lost money. The stock exchange has been temporarily closed.

A detailed silent attack

How did the hackers proceed? To understand it, you have to go back a few hours before their operation. On Wednesday, the day of the attack, a Reddit user revealed that he had discovered a bug on the platform. According to him, when a user deposits funds and withdraws them, he receives 50% more than the amount he deposited. He goes on to explain that if users deposit and then withdraw their tokens continuously, they could get maximum money on the platform.

A few minutes after the information was revealed, the Osmosis team closed the network in order to focus on this situation. Unfortunately, it was too late! She then found that $ 5 million had disappeared from the exchange’s coffers during the time that elapsed between the publication of the message and the closure of the network.

According to the data extracted from the network, an OSMO user was silently taking advantage of the bug. He had only invested 26 OSMO tokens and received an additional 13 tokens in the first transaction. Another user would then have deposited 101,230 OSMO tokens and obtained in return 151,084 OSMO tokens more in half a minute.

In total, 6 users have hit the jackpot by taking advantage of the bug on the Osmosis network. Of these, 2 responded to the platform’s call by promising to return about $ 2 million to it. As for the other 4, they preferred to remain silent and have not yet spoken out.

SourceĀ : Bitcoinist

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Behind the generic signature “Editorial CT” are young journalists and authors with special profiles who wish to remain anonymous because they are involved in the ecosystem with certain obligations.

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