Moonwell Hit with $8.7M Security Breach via MAMO Token Price Manipulation

A security breach has hit the decentralized finance platform Moonwell, resulting in approximately $8.7 million being drained from its MAMO Core Market on the Base blockchain.

The attacker exploited a vulnerability by artificially inflating the price of MAMO token, an illiquid collateral asset, to create overvalued collateral positions.

Using this inflated collateral, the hacker withdrew legitimate cbBTC from Moonwell's mCBTC lending pool. Blockaid's preliminary analysis revealed 50.6 cbBTC had been extracted, valued at over $4 million, though PeckShield's subsequent investigation placed the ultimate loss near $8.7 million.

The compromised assets were subsequently swapped for DAI stablecoin and transferred to a single cryptocurrency address.