Strange but true
Quite a scare
A hacker gave the community of OlympusDAO an early Halloween fright as they made off with 30,000 OHM tokens which is the equivalent of $300K. The funds were immediately taken but strangely enough, returned almost as soon as snatched.
This appeared to be the work of what is called a “white hat” hacker. If one were to see the crypto space as the wild wild west then it would be easy to understand what the terminology means. In western movies, the bad guys were almost always the ones with black suits and hats while the hero always wore white. White hat hackers are hackers that do it for the benefit of the community, to solve issues, and find bugs that were not known by the originating team.
It would appear the hack was due to redeem function that did not have a way to properly validate input on the “BondFixedExpiryTeller” contract.
OlympusDAO, a decentralized reserve currency protocol launched last year. the team at OlympusDAO confirmed the exploit and informed members via the discord community server.
“This morning, an exploit occurred through which the attacker was able to withdraw roughly 30K OHM ($300K) from the OHM bond contract at Bond Protocol. This bug was not found by three auditors, nor by our internal code review, nor reported via our Immunefi bug bounty,”OlympusDAO
The amount stolen was actually only a percentage of what could have really been taken-$3.3 million. The team at OlympusDAO stated that affected markets were closed and they were looking for ways to reimburse those that were affected by the situation. Before the team could even get the funds out to the affected users the money was returned by the hacker.
There was no reveal as to why this situation turned out the way it did, the hacker did not make any attempts to contact the team at OlympusDAO, and some are stating that the hacker was merely pointing out a flaw or bug that could potentially be paralyzing for the platform. Another thought is the hacker plans to capitalize on the bounties for bugs and hopes to be compensated nicely.
Once again Crypto has shown how vulnerable it truly is and how in an instant things can definitely go in another, less positive direction. It is good to be able to have “White Hat” hackers in a space with so many wearing black.
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