$800K in ETH drained after Sturdy Finance falls to hack

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Sturdy Finance is the latest to fall victim to a hack, with the hacker running away with $800K in Ether. Here's what transpired...

Decentralized Finance Protocol Sturdy Finance has lost 442 Ether because of a security flaw, with the full amount valued at over $800,000. The hacker took advantage of a loophole to manipulate a flawed price oracle, which ultimately allowed him to siphon money from the protocol.Sturdy Finance of a transaction that appeared to be connected to price manipulation on June 12.

Reentrancy attacks, which are frequently used to fraudulently withdraw money via DeFi protocols, were used to launch the attack on Sturdy Finance. This kind of attack makes use of the capability to make many calls to the same function within a single transaction before the initial function call has finished.

The attacker then used their control over the function calls to take advantage of the pricing oracle. Sturdy Finance derived its price oracle from a second “read-only” smart contract, which was in charge of reliably estimating the market value of assets in a liquidity pool run by Balancer protocol. However, the attacker was able to siphon money from Sturdy Finance by successfully manipulating the oracle.

 

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