Elephant Money, a decentralized “yield farming” mechanism on the BNB Chain that uses the native token ELEPHANT and the stablecoin TRUNK, has had its reserve stolen.
Elephant Money DeFi protocol, according to cybersecurity firm BlockSec, has been the target of a price manipulation attempt that began with borrowed Wrapped Binance Coins (WBNB).
The attacker minted TRUNK stablecoin and redeemed it for more WBNB and BUSD in a range of events. It resulted in a $4 million gain for attackers per cycle and a rise in the ELEPHANT price.
This attack was carried out several times, and according to Elephant Money, a total of $11.2 million in equivalent has been permanently lost.
PeckShield, another top-tier DeFi security firm, dubbed this type of attack “forced investment.”
The Elephant Money team is already working on an emergency patch as well as new methods to avoid future attacks.
The price of ELEPHANT, the incentive token for Elephant Money’s liquidity, plunged by nearly 88% in a couple of minutes after the attack.
Despite a brief pullback, the token is currently trading at $0.000000088508, or 77.1% lower than yesterday’s values.
At the same time, Elephant Money staff confirmed that no users’ funds are now at risk. The only caution they offered was to avoid panic selling.
The DeFi sector has been the target of a series of hacking attempts in recent weeks. The Sky Mavis team announced a $1 million bounty campaign after the world-record-breaking hack of Axie Infinity’s Ronin Network.
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