$90 Million Stolen From Mirror Protocol on Terra Classic

$90 Million Stolen From Mirror Protocol on Terra Classic

May 31, 2022 Off By Roland G

Last October, Mirror Protocol was the victim of a $90 million security flaw that went unreported for seven months.

Mirror Protocol | Source: Zipmex

On October 8, 2021, Mirror Protocol was hacked for about $90 million on Terra Classic, according to a Twitter user named FatMan, who exposed the information for the first time on May 26, 2022, seven months after the incident.

According to FatMan, who discovered the compromise through “pure serendipity,” the attacker stole $89,706,164.03 from the protocol using an exploit that allowed them to unlock collateral from the lock contract “again and over at minimal expense and little risk.”

As per Terra Classic on-chain statistics, the attacker was able to release UST funds from the protocol many times within the same transaction for only $17.54 each time.

Mirror Protocol is a decentralized platform that allows users to create digital synthetics that mimic the price of real-world assets like stocks. The basic contracts of Mirror were built on Terra Classic. However, its assets are available on Ethereum and Binance Smart Chain (BSC).

In addition, Mirror developers secretly repaired the flaw on May 9 after it was identified by Mirror community members on May 17. The developer team had made no remark on whether or not the flaw had previously been discovered or exploited.

The Mirror Protocol team has yet to state the exploit, prompting community outrage. On the other hand, FatMan believes that there is no “compelling proof” that the hacker was an insider.