How much was lost in the Custom Lending Pool hack?

The Custom Lending Pool hack resulted in $366K in losses on November 12, 2023.

What attack technique was used in the Custom Lending Pool exploit?

The Custom Lending Pool exploit utilized Other. Understanding this attack vector is critical for smart contract auditors and developers building secure DeFi protocols.

How can developers prevent similar smart contract attacks?

Preventing smart contract hacks requires a combination of secure coding practices, thorough security audits, and understanding common attack vectors like reentrancy, oracle manipulation, and access control flaws. Smart Contract Hacking (SCH) provides hands-on training to help developers and auditors identify and prevent vulnerabilities before deployment.

Custom Lending Pool Hack

TOTAL LOST $366K

Low Nov 12, 2023 Other

Affected Chain 2023 Incident surface

Recovered - No recovery reported

All-Time Rank #1094 By amount stolen

Protocol Type Exploit/Other Target category

Incident Overview

Quick Summary

Custom lending pool on Binance Smart Chain exploited due to approval issue, resulting in a loss of 366,058 USDT.

Details of the Exploit

A custom lending pool running on the Binance Smart Chain was exploited on November 12, 2023, due to an approval issue in the smart contract. The attacker was able to drain approved funds from the victim contract, totaling 366,058 USDT. The exact cause of the exploit is hard to define, as the contract is not verified and the source code is not available.

The stolen funds were bridged to the Ethereum mainnet via Stargate Bridge and swapped for DAI and WETH. These funds were then deposited into Railgun Relay, a private wallet on the Ethereum network.

Block Data Reference

Attacker Address:

https://bscscan.com/address/0x69e068eb…21cea0

Malicious Contract Addresses:

https://bscscan.com/address/0x69e068eb…21cea0

https://bscscan.com/address/0x3918e0d2…006108

Victim Contract Address:

https://bscscan.com/address/0x8c2d4ed9…95ffe7

Malicious Transaction:

https://bscscan.com/tx/0x3dcb26a1…c8c9b3

Bridging Transactions:

https://bscscan.com/tx/0x9f2cc9f6…b02532

https://etherscan.io/tx/0xd4d7f80f…124310

Railgun Deposit Transactions:

https://etherscan.io/tx/0xae1ad836…095b7f

https://etherscan.io/tx/0xc55b3285…3e8322

Incident Report

Protocol / Project Custom Lending Pool

Date of Incident November 12, 2023

Attack Technique Other

Classification Borrowing and Lending

Primary Source View Post-Mortem

Protocol Information

Protocol Type Exploit/Other

Team Anonymous

Source Code Unverified

What the Attacker Needed to Succeed

Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.

Technical Knowledge Deep understanding of other and Solidity and EVM internals

Capital Required Seed capital to cover gas and initial position setup

On-Chain Access Ability to interact with smart contracts and deploy a custom exploit contract

Protocol Analysis Identification of the exploitable vulnerability in Custom Lending Pool's contract logic - root cause: borrowing and lending

Execution Speed Precise transaction ordering and timing to exploit the vulnerability within a single atomic block

Obfuscation Plan A strategy to launder and move stolen funds - typically through mixers, cross-chain bridges, or decentralized DEX swaps to resist tracing

What Auditors Should Check

Could this have been caught in audit? Likely — with a thorough Other audit checklist and test coverage

If you're auditing a protocol with similar architecture to Custom Lending Pool, these are the critical security checks that could have prevented this incident (November 2023).

Verify all logic paths related to Other are guarded by proper access controls and input validation
Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs

Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.

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Sources & References

01
Source 1 https://twitter.com/DeDotFiSecurity/status/1724203104520814979?s=20

Threat Assessment

Severity Level

LOW

Attack Vector Other
Root Cause Borrowing and Lending
Year 2023

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