At the time of writing, Sturdy Finance is still investigating to determine the actual causes of the exploit.
The recent security lapse within the Decentralized Finance (DeFi) ecosystem, specifically within the Sturdy Finance platform, led to a loss of nearly $800,000, which equates to about 442 Ether (ETH).
To execute the attack, the malicious actor reportedly manipulated a flawed price oracle, allowing them unauthorized draining funds from the system.
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On June 12th, Sturdy Finance received a wake-up call from a blockchain security firm PeckShield as they spotted a transaction indicating price manipulation.
The platform was quick to take action, acknowledging the exploit within an hour of PeckShield's report. Sturdy Finance immediately halted all market activities to minimize further potential losses, promising their users that their remaining funds were no longer in jeopardy.
The actions taken by Sturdy Finance were quick and responsive, however, the perpetrator had already transferred the stolen Ether to the sanctioned cryptocurrency mixing service Tornado Cash, as noted by PeckShield.
In its report, PeckShield also pinpointed the flawed price oracle as the source of the security weakness exploited in this incident.
BlockSec, another player in the blockchain security arena, provided further analysis of the attack. The security breach, they suggested, was a classic case of a reentrancy attack - a common tactic used by digital thieves targeting DeFi platforms.
Reentrancy attacks allow hackers to extract more funds than normally permissible by repeatedly invoking a function within a single transaction before the completion of the initial call.
In other news, last week, malicious actors behind Atomic Wallet exploit moved a part of stolen funds to a crypto mixer linked to North Korean hackers, dubbed Sinbad.io.
