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$3.8 million hack, XCarnival with 1,500 ETH to perpetrator.

28-Jun-2022 By: Simran Mishra
$3.8 million hack, X

After a $3.8 million hack, XCarnival offers a 1,500 ETH prize to the perpetrator.

On June 26, NFT's XCarnival lending platform experienced a $3 million hack, which led to the suspension of the smart contract. The hacker has agreed to restore a portion of the money stolen in exchange for a reward, though.

XCarnival gets back 50% of the money that was taken.

The hacker abused the protocol by using a withdrawn promised NFT as collateral to borrow more money, according to blockchain security company PeckShield. Following multiple transactions that were repeated, the hacker amassed 3,087 ETH, which at the time of the event was worth $3.8 million. The protocol loss can be greater, according to PeckShield.

In a tweet, XCarnival acknowledged the attack and mentioned that deposits and borrowing had been temporarily halted. The team convinced the hacker to give up half of the money while keeping the other half as a bounty. The hacker also accepted their promise to shield them from legal prosecution. While giving 1,467 ETH back to XCarnival administrators, the hacker kept 1,500 ETH as a reward.

Hackers lack patience.

Despite the crypto cold, a growing number of protocol exploits and scams continue to plague the cryptocurrency industry. A weakness on Harmony's Horizon bridge was recently used by hackers to steal about $100 million in Ethereum, Binance Coin, Tether, USD Coin, and Dai. Similar currencies were eventually exchanged for ETH on decentralised exchanges, Elliptic reports, using a "frequently encountered technique with these hacks."

Osmosis' liquidity pool was depleted of $5 million earlier in June. About $2 million of the stolen assets were recovered from two members of FireStack, one of the largest validators on Osmosis, not long after the platform started looking into the attack's origin.

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