Attacker makes $370,000 profit on Avalanche’s $51 million flash loan arbitrage

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Last Updated on September 8, 2022 by Bitfinsider

According to CertiK, Nereus Finance, a DeFi staking platform on Avalanche, was impacted in a flash loan arbitrage attack on Tuesday, which saw the exploiter drain $370,000 in USDC stablecoin.

Snowtrace on-chain data shows that the attacker funded the exploit with a $51 million flash loan. The funds were used to carry out a flash loan attack on Nereus, which manipulated token pricing. After the arbitrage trade, the attacker paid back the $51 million loan but still had $370,000 in USDC.

The funds were then ‘bridged’ from the Avalanche blockchain to the Ethereum network by the attacker. In cryptocurrency, bridging refers to the transfer of tokens between blockchains. The bridged funds were then converted into 194 ETH ($310,000) and 15,800 DAI ($15,800) and stored in this address, which also corresponds to the attacker’s Avalanche address.

As of the time of publication, only about 14 ETH and 15,800 DAI remained in this address. The attacker sent 180 ETH to four distinct addresses (45 ETH each). These funds have all been transferred to Free Float, a cryptocurrency exchange on the Lightning Network, indicating that the arbitrageur is attempting to cash out the profit.


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Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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