Nostra Hit by $3.5M Oracle Attack as Crypto Security Concerns Re-Emerge

Crypto security concerns have resurfaced after Nostra's lending market on Starknet was exploited through manipulation of the price feed for NSTR. The attacker manipulated the protocol's oracle to report an inaccurate NSTR value, making their collateral look more valuable than it really was.

The attacker then used this overvalued collateral to borrow approximately $3.5 million in Ethereum [ETH], Starknet [STRK], Circle [USDC], Tether [USDT], Wrapped Bitcoin [WBTC], and DAIv1. This amount includes roughly $1.92 million that was bridged to Ethereum, comprising 234.57 ETH and 1.3 million DAI.

Nostra has paused lending, borrowing, withdrawals, and liquidations while investigating the oracle manipulation. The protocol is still assessing the impact and potential recoveries.