Price oracle manipulation
The company wrote on Twitter that a hacker managed to manipulate its money market, Anchor, and increased the price of INV via Sushiswap – an open-source ecosystem of DeFi tools.
INV is an Ethereum token that powers Inverse Finance, a decentralized platform used for lending, borrowing, and creating synthetic assets.
The manipulation caused a sharp increase in the price of INV, allowing the hacker to borrow $15.6 million in the DOLA, ETH, WBTC and YFI cryptocurrencies against it.
“The manipulation was not a flash loan attack and was unrelated to Inverse’s smart contract or front end code. All future borrows on Anchor are temporarily paused,” the company said initially.
In a blog post on 4/4, Inverse Finance confirmed PeckShield’s analysis which found that the attacker withdrew 901 ETH from Tornado Cash and made a series of trades primarily in the INV/DOLA pool on SushiSwap on Saturday morning. Tornado Cash is a cryptocurrency mixer that allows people to hide the origin of funds.
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