DeFi lending market Secured Finance hit by attack, losing $104,000

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The DeFi lending platform Secured Finance was hacked on September 5, resulting in a loss of approximately $104,000. Attackers exploited a flaw in the block order book’s average pricing mechanism, using self-trades to manipulate prices and create fictitious lending positions. A contract was deployed but not immediately executed, before flash loans and self-trades inflated prices and drained USDC. The original wallet was rolled back due to low gas fees. Shortly afterward, the front-running bot coffeebabe withdrew 0.9 WBTC ($72,000) and transferred 28.8 ETH to an Ultra Sound Money builder, retaining only around $29. Another bot later seized a portion of the remaining USDC. With the Fear & Greed Index showing signs of panic, altcoins under scrutiny may face renewed volatility amid such security risks.

Odaily Planet Daily report: On September 5, the lending market of the decentralized lending protocol Secured Finance was attacked, resulting in losses of approximately $104,000. The root cause was that collateral was valued based on the average execution price from the order book in the current block, allowing attackers to manipulate this price through self-trades, thereby rendering fraudulent loan positions as valid collateral. After deploying the contract, the attacker did not immediately execute it; instead, they used a flash loan and self-trades to inflate the price and withdraw USDC. The original attack wallet’s transaction reverted due to insufficient gas fees. Approximately 48 seconds later, the generic frontrunning bot coffeebabe withdrew around 0.9 WBTC, valued at approximately $72,000, and transferred about 28.8 ETH to the Ultra Sound Money builder, retaining only about $29 for itself. Subsequently, another bot withdrew a portion of the USDC.

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