Money taken from the Moola Market lending protocol has been returned by an unknown hacker. Currently, protocol activity has been halted.
The majority of the funds stolen through an exploit by the hacker at Moola Market have been returned to their owners.
On Tuesday, Moola Market was hacked to $8.4million. The attacker returned 93.1% ($7.8m) of the stolen funds to Moola’s account hours later.
The In response to today’s incident, 93.1% of funds have been returned to Moola governance.
The attacker retained 700,000 CELO tokens as a bounty. ($518,000).
The low liquidity of MOO, a native token on Moola’s lending protocol on Celo blockchain, was exploited by the attacker. They used the MOO token on Ubeswap to inflate its value and then leveraged the tokens to take user assets from the protocol. Igor Igamberdiev is the research director for data at The Block.
The attacker had 243,000 CELO tokens ($182,000) in their Celo address. Next, the attacker borrowed 1.8 million MOO tokens and deposited 60,000 CELO tokens onto Moola. To quickly inflate MOO’s price, the attacker used the remaining CELO tokens.
The perpetrator used the MOO tokens’ increased value as collateral to obtain other assets in a loop. They were able to use the increased value of their MOO tokens as collateral to borrow other assets in a loop.
The majority of the project’s funds have been recovered, but lending protocol activity remains suspended. The team stated that the lending service will not be resumed until community discussions are held on the next steps. Moola Market raised $1.4 Million during a seed round that was led by Flori Ventures and Polychain Capital in March 2021.