New Free DAO crashes 99% after $1.25M flash loan attack

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A flash loan attack launched against New Free DAO (NFD) has drained $1.25 mil­lion from the pro­to­col and caused its token price to crash by 99%.

Blockchain secu­ri­ty firm Cer­tik raised an alarm about the attack via Twit­ter on Sept. 8. The attack­er manip­u­lat­ed NFD’s “addMem­ber()” func­tion to add him­self as a mem­ber, which gave him access to use the unver­i­fied con­tract to exe­cute three flash loans.

The attack­er was able to bor­row 4481 WBNB and swapped it for NFD tokens amount­ing to $1.25 mil­lion which forced the token price to crash by 99%.

About $500,000 is said to have been swapped to BUSD and being laun­dered through sanc­tioned mix­ing pro­to­col Tor­na­do Cash.

Attackers take to Avalanche

In less than 24 hours, the cryp­to com­mu­ni­ty had to bat­tle two flash loan attacks, includ­ing that of Avalanche.

On Sept. 7, a flash loan attack on the Avalanche blockchain wiped off $370,000 USDC from pro­to­cols build­ing on the network.



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