Nostra Finance Oracle Price Manipulation Attack Drains $3.5M on Starknet

Nostra Finance's Starknet money market was hit by an oracle price manipulation attack on September 17, allowing an attacker to borrow $3.5 million in assets against inflated collateral.

The attacker created a fake NSTR/SolvBTC liquidity pool and performed wash trading to spike the price of NSTR from about $0.006 to $49.5, an increase of roughly 8,000x.

The funds were then borrowed using the overvalued NSTR as collateral, with the attacker borrowing $ETH, $STRK, $USDC, $USDT, WBTC, and $DAI tokens.

Nostra Finance has fully paused its money market, disabling supply, borrow, and liquidation functions, while the platform assesses the aftermath of the attack.