QuickSwap decentralized exchange recently lost $200,000 in Ethereum to an unknown perpetrator. The lending platform has urged the affected wallet users to withdraw their funds as it plans to halt lending services temporarily.
QuickSwap Lost $200,000 To Vicious Attacker Via Price Manipulation
According to the reports, the attacker used a flash loans trick to extort the Market XYZ on the QuickSwap exchange. Furthermore, the Polygon-based exchange reported that the attack only affected the Market XYZ lending project.
Initially, PeckShield, a crypto-security firm, stated that the attack also affected Qi DAO ( the miMATIC stablecoin issuer). However, the security firm later clarified that the perpetrator only exploited the Market XYZ on the QuickSwap exchange.
Furthermore, PeckShield stated that the attack was a case of price manipulation on the Curve Pool Oracle. The exchange added that the Curve Pool Oracle is a tool miMATIC markets use for price feed.
In addition, the security firm revealed that the attacker used the tool to inflate the markets’ price values. Then he borrowed a considerable amount from the market at an inflated price, as reported by PeckShield.
Subsequently, the hacker reportedly converted the stolen funds to ETH and transferred them to a Tornado Cash address. Meanwhile, Tornado Cash is still under sanction from the US. Treasury office. The regulator accused it of aiding and abetting crypto crimes with its extreme user privacy policy.
Polygon-based QuickSwap Shuts Lending Services Down Temporarily
Several hours after the attack rumors, QuickSwap confirmed that it lost $200k in funds due to a criminal exploit on its platform. However, the exchange stated that its users’ funds were not part of the stolen funds.
Furthermore, QuickSwap promised its users that their funds were safe and secured on the platform. However, the Polygon-based firm also announced that it would temporarily shut down its lending services due to the attack.
Consequently, it urged users with an open position on Market XYZ to close and withdraw as soon as possible. The crypto exchange stated that it would soon shut down the markets till further notice, according to the reports.
However, it stated that its developers, together with other cyber and crypto security firms, are investigating the attack. It promised users not to panic as the perpetrator would be found and dealt with soon.