Subscribe to our Telegram channel
Cryptocurrency hacker lost millions of dollars due to his own mistake
The hacker Abraham Eisenberg, who is behind the $ 114 million exploit on Mango Markets, lost millions of dollars in a similar attempt to exploit the decentralized lending platform Aave. The attacker used a scheme called the «oracle attack,» in which manipulating the price of the CRV token of the Aave platform was supposed to allow Eisenberg to steal money, but his scheme did not work.
I've been advised aave is perfectly safe so here's the potential trading strategy. Not financial or legal advice, but if you do make 9 figures on this feel free to send a tip
Note that starting with more initial capital increases success odds and profit percentage pic.twitter.com/HKAF7Y5ogM
— Avraham Eisenberg (@avi_eisen) October 19, 2022
A few weeks ago, a confident hacker tweeted an exploit plan, convinced that this time he would succeed. Abraham Eisenberg also advised other users to «try their luck» and try to make money from exploits.
To implement his «legitimate trading strategy,» the hacker borrowed 40 million CRV, hoping to withdraw several times that amount. «The exploit was supposed to work by manipulating the price oracle to increase the value of the CRV token. This would have increased Eisenberg’s collateral, allowing him to receive more funds under the protocol than he would have actually had. However, the price of CRV fell from $ 0.53 to $ 0.41. «An attempt to increase the price of CRV on Aave was unsuccessful and unprofitable,» representatives of Gauntlet, a financial modeling platform used by Aave, tweeted.
As a reminder, the October attack by Abraham Eisenberg left the Mango Markets platform insolvent, and users' positions were threatened with liquidation, as the protocol could not repay bad debt. Eisenberg noted this in his statement and said that he had reached a deal with the DeFi platform. The Mango community voted to allow Eisenberg to keep $ 47 million and return the remaining $ 67 million to the project. The returned funds were used to recapitalize the exchange.