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Onyx Protocol Suffers $2.1M Loss in Defi Breach, Fraction of Funds Redirected to Tornado Cash


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Onyx Protocol Suffers $2.1M Loss in Defi Breach, Fraction of Funds Redirected to Tornado Cash

Multiple sources have confirmed that Onyx Protocol, a decentralized finance (defi) platform, has been compromised in a security breach, resulting in a loss of $2.1 million. In the wake of this attack, a fraction of the stolen crypto assets, originally from the cross-token liquidity market, were swiftly transferred to the ether mixing service Tornado Cash.

Onyx Protocol Loses $2.1M Hack by Precision Loss Vulnerability and Flash Loan

On November 1, 2023, the blockchain analysis and security team at Peckshield exposed the suspicious transaction involving Onyx Protocol, a peer-to-peer lending and cross-token liquidity market, on social media channel X (formerly known as Twitter).

The attackers launched the assault using a “precision loss” bug along with a flash loan, successfully draining a considerable amount of ETH and ERC20 tokens from the platform. Despite this, the platform’s native currency, onyxcoin (XCN), has only seen a slight decline of 0.8% since the event, a modest decrease when compared with the significant impact on crypto assets seen in previous defi hacks.

Currently, the total value locked (TVL) in the decentralized finance project is at $557,253, marking a dramatic drop from its prior level of $2.88 million the day before the breach. Notably, a portion of the stolen funds, now converted to ethereum (ETH), made their way to the ether mixing service Tornado Cash.

What do you think about the Onyx Protocol hack? Share your thoughts and opinions about this subject in the comments section below.

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