XPR Network Hit with $9M Exploit, But Most Funds Secured

XPR Network, a layer 1 blockchain, was exploited after an attacker manipulated its withdrawal function to drain $9 million in liquidity. The attack occurred on proton.swaps, where the attacker took advantage of a flaw that allowed them to withdraw real tokens by manipulating internal balances.

The exploit happened within just 11 minutes of the attack's launch and affected multiple asset pools, including XUSDC, XMD, METAL, LOAN, and bridged assets. The attacker then moved some of the stolen funds through the LOAN protocol and another account.

Network producers identified the issue and patched the contract to prevent further damage. However, the incident raises concerns about weak input validation amplifying losses across interconnected liquidity pools.

The on-chain drain had a significant impact on XPR's price action, with sellers taking control as confidence weakened. The token's price fell by 6.5% before stabilizing at around $0.00259.