Fortress Loans Hack

TOTAL LOST $3.0M
Medium Oracle Manipulation & Price Manipulation bsc

What happened

Fortress Loans was attacked due to oracle vulnerability. An attacker was able to manipulate the project's oracle which allowed them to borrow differrent number of tokens for the amount of ~$3m (~1k ETH and 400k DAI).

Fortress Protocol is a decentralized marketplace for Lenders and Borrowers with Borderless Stablecoins. Fortress Loans became a victim of attacker that manipulate with the price oracle, which made possible to get about $3m and launder them through the TornadoCache.

Attack flow:

Attacker created unverified smart-contract (https://bscscan.com/tx/0x4800928c…af5039) which was later used to send a series of transactions (https://bscscan.com/tx/0x13d19809…b061bf).

A series of transactions allowed them to propose Fortress Governor Alfa contract with a malicious proposal, for which they themselves voted to set the FTS extremely valuable. The attacker then borrowed a huge amount of tokens that exchanged for ETH and DAI. Then all stollen funds were transferred across the bridge to the Ethereum network and laundered via TornadoCache.

As the time of this writing information on this case is scarce. More sources will be added if the case should develop.

Attacker address on BSC: https://bscscan.com/address/0xA6AF2872…5d22Ad

Attacker address on ETH. Here all the stolen funds were laundered through TornadoCache: https://etherscan.io/address/0xA6AF2872…5d22Ad

Bridging transaction from BSC to ETH:

BSC: https://bscscan.com/tx/0x36fd458d…7e9eea

ETH: https://etherscan.io/tx/0xcf852b02…543af5

Attacker's smart-contract (BSC): https://bscscan.com/address/0xcd337b92…463a45

Attack transaction: https://bscscan.com/tx/0x13d19809…b061bf

Case & protocol details

Classification Protocol Logic / Borrowing and Lending / Governance
Protocol Type Lending
Affected asset / contract FTS
Smart Contract Language Solidity
Protocol Twitter/X @Fortressloans

Security review history

  • Ether Authority 2021-03-19 No public report
  • HashEx 2021-04-12 No public report

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