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Hackers Use Bridging Mechanism to Steal $700k from FilDA

Published 2023-04-24, 03:58 a/m
© Reuters.  Hackers Use Bridging Mechanism to Steal $700k from FilDA

Coin Edition -

  • FilDA experienced a significant exploit on Elastos Smart Chain and REI Network.
  • The hackers used a bridging mechanism to move out ELA tokens.
  • A bounty was promised to the attackers by FilDA if they would return the exploited funds

In a tweet on Monday, the blockchain security firm PeckShield disclosed that FilDA, a decentralized finance (DeFi) platform, experienced a significant exploit on Elastos Smart Chain (ESC) and REI Network. The security firm estimated the loss from the exploit to be around $700,000.

According to PeckShield, the perpetrators used a bridging mechanism to move around 80,000 Elastos tokens (ELA) worth more than $100,000 to the BNB Chain, exchanging them for approximately 326 Binance Coin (BNB). Furthermore, the attackers cashed about 200,000 ELA tokens to Ethereum, traded a portion for about 17 ETH, and subsequently sent out the ETH and 160,000 ELA coins left.

The security firm also highlighted that the hackers deposited the stolen funds into Tornado Cash, an anonymous transaction service that makes it difficult to trace the source of the funds.

Notably, the DeFi platform has issued an official statement regarding the incident. FilDA said it identified the vulnerability and isolated the attack vector, temporarily halting the ESC and REI Network to review the situation thoroughly.

FilDA also said it is working closely with centralized exchanges, security, and ecosystem partners to analyze the on-chain activity and trace the addresses involved in the exploit. It has requested law enforcement agencies to pursue the case to emphasize the seriousness of the situation.

As a further measure, FilDA has promised to offer a bounty to the attackers if they return all the exploited funds. The company has assured its users that it will continue to update the situation as the investigation progresses and formulate an action plan to prevent future reoccurrences.

The post Hackers Use Bridging Mechanism to Steal $700k from FilDA appeared first on Coin Edition.

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