Crypto
$8.7M Moonwell Loss Highlights DeFi Security Risks
A sophisticated attack on Moonwell's lending platform has resulted in an estimated $8.7 million loss for the decentralized finance (DeFi) protocol.
The hacker manipulated the price of MAMO, a token with limited liquidity, to create overvalued collateral positions and withdrew legitimate cbBTC from Moonwell's mCBTC lending pool.
Blockchain security analysts CertiK and PeckShield independently confirmed the attack methodology and estimated the damage at approximately $8.7 million.
The protocol acted swiftly to contain the breach, implementing emergency borrow caps of 1 wei across every Core Market on the Base network and reducing supply caps for MAMO and WELL tokens.