Omni, an NFT lending platform, had 1,300 ETH ($1.43 million USD) wiped out in a flash-loan attack on July 10.

Omni is the next victim of flash-loan

According to security firm PeckShield, on July 10, an attacker used a flash loan mechanism to withdraw money from Omni’s NFT lending contract. After borrowing large amounts of NFTs, hacker used them to manipulate and profit from arbitrage.

Omni is an NFT staking platform, usually for popular NFT collectors like Bored Ape Yacht Club, for tokens like Ether (ETH). Yajin Zhou, CEO of blockchain security firm BlockSec, explained the attack process.

The attack caused more than 1,300 WETH (equivalent to 1.4 million USD) damage to this NFT lending platform. The protocol asserts that the crash did not affect any client funds as only internal testing funds suffered losses and the platform is still in beta testing.

Immediately after the attack, Omni halted the protocol to allow more time to investigate. Data from Etherscan shows that the attacker laundered the stolen funds through the Tornado Cash trading mixer.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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NFTs News

NFT Lending Platform Omni Hacked $1.4 Million

Omni, an NFT lending platform, had 1,300 ETH ($1.43 million USD) wiped out in a flash-loan attack on July 10.

Omni is the next victim of flash-loan

According to security firm PeckShield, on July 10, an attacker used a flash loan mechanism to withdraw money from Omni’s NFT lending contract. After borrowing large amounts of NFTs, hacker used them to manipulate and profit from arbitrage.

It seems a reentrancy-related hack. @ParallelFi @OMNI_xyz The stolen funds were just mixed via @TornadoCash https://t.co/Nyunlkk3rr pic.twitter.com/XxxVyX80Fq

— PeckShield Inc. (@peckshield) July 10, 2022

Omni is an NFT staking platform, usually for popular NFT collectors like Bored Ape Yacht Club, for tokens like Ether (ETH). Yajin Zhou, CEO of blockchain security firm BlockSec, explained the attack process.

1/ Now it's safe to disclose the root cause. The attack(https://t.co/iitml2DybH) on Omni Protocol @ParallelFi is due to the old-school reentrancy of onERC721Received.

— BlockSec (@BlockSecTeam) July 10, 2022

The attack caused more than 1,300 WETH (equivalent to 1.4 million USD) damage to this NFT lending platform. The protocol asserts that the crash did not affect any client funds as only internal testing funds suffered losses and the platform is still in beta testing.

Immediately after the attack, Omni halted the protocol to allow more time to investigate. Data from Etherscan shows that the attacker laundered the stolen funds through the Tornado Cash trading mixer.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

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