What to know:
- MAYAChain halted its network after an exploit drained an estimated $1.7 million in crypto, including about 20 BTC worth $1.4 million.
- The attack reportedly exploited six connected software bugs involving trading accounts, transaction processing, and liquidity-pool calculations.
- CACAO plunged nearly 89%, from around $0.115 to $0.013, while liquidity-pool losses reached roughly $10.9 million.
The MAYAChain blockchain has suspended operations following an attack on the protocol that saw an estimated $1.7 million stolen by an attacker using several software vulnerabilities within the Maya Protocol, which is a decentralized exchange (DEX) platform that connects different chains.
The attack saw about 20 Bitcoin valued at $1.4 million stolen, together with other digital currencies amounting to $300,000.
This was revealed by one of the pseudonymous founders of the Maya Protocol, Aalux, on Wednesday. The team acted swiftly to suspend the operation of the protocol to contain the attack.
MAYAChain Exploit Linked to Six Connected Bugs
The initial technical analysis provided by Aalux revealed six individual bugs in the software that were exploited together in the hack. These vulnerabilities concerned trading account issues, processing of out transactions, and calculation of the liquidity pool.
According to the analysis, the hacker sent one transaction with 23 messages in total. It caused the detection of false theft and manipulation of the low-liquidity pool.
Afterwards, the attacker managed to manipulate the price of the pool and withdrew 48.87 million CACAO coins from the Asgard module of Maya Protocol. This technique helped the attacker transfer the majority of the stolen funds from the protocol.
In total, the hacker stole an estimated $1.36 million worth of assets that have been transferred to other blockchain networks. Approximately $291,000 in CACAO coins and trade account balances on the MAYAChain remain.
Also Read | DOT Price Prediction: DOT Eyes $1.50 as Falling Wedge Signals Breakout
CACAO Price Falls Nearly 89%
The exploitation was also responsible for a massive drop in the price of CACAO, the local token associated with the Maya network.
According to blockchain security expert Vini Barbosa, who provided an initial report on what had occurred, the price of the local currency CACAO reportedly fell by 88.7% during the hacking. This means the price fell from approximately $0.115 to $0.013.
The significant decrease in price resulted in a higher loss overall for the liquidity pools in the protocol. But it was emphasized by, the initial investigation emphasized that the larger loss is not to be seen as the amount of funds stolen.
The evaluation concluded that the value of the pools had decreased by about $10.9 million. It took into account both the decrease in price and arbitrage, along with the funds stolen during the exploit.
MAYAChain Team Works on Network Recovery
The Maya Protocol continues to keep the system offline as the developers look into the entire situation and work on finding a way to solve the security issue that has been identified.
This incident brings to light some of the dangers that could be faced by cross-chain DEXs due to the nature of their functioning.
MAYAChain’s next move will involve addressing the vulnerabilities that have been discovered in order to check its transaction logic and allow for the resumption of normal activity.
According to Aalux, the team will continue with the technical research and work on restoring swaps once all necessary precautions have been put in place.
Also Read | Arbitrum Price Eyes $0.07637 as Buyers Return Amid BVNK’s USDC Expansion
Be the first to comment