Crypto finance company ConicFinance has issued a statement regarding two significant security incidents. Firstly, the company mentioned that it is investigating an exploit involving the ETH Omnipool and that updates regarding the matter will be released. Secondly, they disclosed another attack based on a flash loan, resulting in the attacker gaining control of 1,724 ETH (worth approximately 3.3 million dollars).
ConicFinance is a service provider that enables users to share cryptocurrencies on decentralized finance (DeFi) platforms. One of their significant products is the ETH Omnipool, which is an integral part of the company’s DeFi ecosystem. Users pool their Ethereum assets in this pool to provide liquidity and earn returns through the platform.
However, today, a situation of attack was detected, and ConicFinance immediately took action to protect users’ funds. The company has not yet provided detailed information about the nature of the exploit and the methods used by the attackers. However, they assured that they are closely monitoring the situation and will share updates in a timely manner.
Update:— Conic Finance (@ConicFinance) July 21, 2023
– We are continuing to investigate the root cause of the exploit and are consulting with relevant parties.
– We have disabled ETH Omnipool deposits on the Conic front end. https://t.co/Oln0zh2nCs
Correct, the company has also confirmed that it was the target of a flash loan-based attack, which resulted in the attackers seizing 1,724 ETH. Flash loans are a method used in DeFi platforms to quickly and instantly borrow funds.
In flash loan-based attacks, the attackers can borrow a large amount of cryptocurrency and use it within the same transaction. This allows them to take advantage of liquidity gaps and manipulate prices in their favor. These types of attacks can be particularly harmful as they exploit the decentralized and fast nature of flash loans, making it challenging for platforms to detect and prevent such incidents in real-time.
We will continue to report the developments…