[SlowMist: NEM Suffers Attack Resulting in Approximately $822,000 in Losses] Jinse Finance reports that on October 22, SlowMist issued a security alert stating that NEM was attacked, resulting in losses of approximately $821,920. The root cause was that NemTokenV2 recorded tokens transferred to the liquidity pool (LP) as sell volume without verifying the settlement of the exchange.
The attacker exploited the vulnerability to repeatedly perform 42 operations involving fund transfers, calling skim() to clear incoming tokens, and invoking flushLpSellRecycle(), thereby destroying the original liquidity pool reserves and reducing the NEM reserve balance. The attacker then sold the remaining NEM at the inflated price and withdrew USDT.
Slow Mist: NEM Suffers $822,000 Loss in Attack
JinseShare
Summary
NEM suffered an $821,920 loss following a liquidity pool exploit on October 22, according to a Slow Mist alert. The vulnerability in NemTokenV2 enabled the attacker to manipulate trading volume by repeatedly calling skim() and flushLpSellRecycle(), draining liquidity reserves and inflating NEM’s price before selling for USDT. The attack exploited the absence of redemption checks in the liquidity pool mechanism.
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