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Onyx Protocol Loses $3.8 Million in Preventable Hack

Author: Content Editor
Onyx Protocol, a fork of Compound Finance, suffered a $3.8 million loss in a cyber-attack, highlighting the ongoing need for improved security in the crypto industry. Blockchain security firm PeckShield identified suspicious transactions on OnyxDAO and confirmed losses of $3.8 million, with the attacker already swapping the funds. Web3 security firm Cyvers also verified the incident, noting that most of the loss was in the VUSD stablecoin. The attack exploited a known bug in the Compound V2 code base, manipulating the exchange rate and resulting in the theft of various digital assets. This is not the first time Onyx Protocol has been targeted, and the vulnerability could have been prevented if proper precautions were taken. These attacks demonstrate the ongoing challenge of securing digital assets in the crypto industry.

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