Moola Market, a decentralized finance (DeFi) platform, has reportedly suffered from a security incident that resulted in a loss of up to $9 million worth of cryptocurrency. The platform admitted the incident on Tuesday of this week, stating that the company is investigating an incident. In addition, the Celo blockchain-based platform halted activity on the platform temporarily and requested that its users do not trade mTokens. Moola Market confirmed that it had contacted law enforcement and taken steps to make it difficult to liquidate the stolen funds.
The DeFi platform attempted to negotiate with the attackers, stating that it would negotiate a bounty payment in return for the funds. Within several hours, it appeared that the attacker had agreed to negotiate a bounty due to a tweet published by Moola Market confirming that 93% of the funds had been returned. According to Moola Market, the funds were stolen when the attacker manipulated the price of MOO on Ubeswap, which allowed them to manipulate the MOO time weighted average price. This means that the attacker was able to borrow a large amount of CELO, cUSD, and cEUR from the protocol using MOO as collateral.
Read More: Moola Market Reveals $9m Crypto Exploit
