How much was lost in the Midas Capital hack?

The Midas Capital hack resulted in $600K in losses on June 17, 2023.

What attack technique was used in the Midas Capital exploit?

The Midas Capital exploit utilized Redeem Rounding Error Exploit / 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.

Midas Capital Hack

TOTAL LOST $600K

Low Jun 17, 2023 Redeem Rounding Error Exploit / Other bsc

Affected Chain bsc Incident surface

Recovered - No recovery reported

All-Time Rank #959 By amount stolen

Auditors 1 Prior security audit

Incident Overview

Quick Summary

Midas Capital, a lending platform, was exploited resulting in a loss of over 600,000 $USD.

Details of the Exploit

The Midas Capital, a borrowing and lending platform on the Binance Smart Chain, was exploited by a logic flaw in one of its contracts with unverified source code. As a result, the attacker was able to drain over 600,000 $USD worth of various tokens in stablecoins and $BNB. Part of the stolen amount was swapped for 510 $BNB and then transferred through TornadoCash.

The contract misused the redeem counter which, when provided with different amounts of HAY/BUSD AMM tokens, gave back multiple times the token value, behaving much like a free ATM.

Block Data Reference

Attacker Address:

https://bscscan.com/address/0x4b92cC34…470734

Malicious Transaction:

https://bscscan.com/tx/0x66654f11…ec2537

Funds Transfer Transaction:

https://bscscan.com/tx/0x4ab18c57…735383

Funds Transfer to TornadoCash Transaction:

https://bscscan.com/tx/0x50d2ac94…97edf1

This is classified as a Arithmetic Overflows Underflows . Compare similar hacks →

Incident Report

Protocol / Project Midas Capital

Date of Incident June 17, 2023

Affected Chain(s) bsc

Attack Technique Redeem Rounding Error Exploit / Other

Classification Protocol Logic / Borrowing and Lending

Primary Source View Post-Mortem

Protocol Information

Protocol Type Lending

Smart Contract Language Solidity

Official Website www.midascapital.xyz/

Protocol Twitter/X @MidasCapitalxyz

Team Anonymous

Source Code Unverified

Market Context at Time of Hack

Token Categories

BNB Chain Ecosystem

Protocol Links

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 redeem rounding error exploit / other and Solidity and EVM internals

Capital Required Seed capital to cover gas and initial position setup

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

Protocol Analysis Identification of the exploitable vulnerability in Midas Capital's contract logic - root cause: protocol logic / 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 Redeem Rounding Error Exploit / Other audit checklist and test coverage

Audited by Audit Report 1 — still lost $600K. Prior audits don't guarantee safety, especially after post-audit code changes.

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

Verify all logic paths related to Redeem Rounding Error Exploit / Other are guarded by proper access controls and input validation - see the Arithmetic Overflows Underflows attack class for patterns
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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Security Audit History

Audit Report 1 Report

Related Attack Classes

The technique used in this hack maps to these vulnerability classes in our security curriculum:

See all Arithmetic Overflows Underflows examples →

Arithmetic Overflows Underflows

Sources & References

01
Source 1 https://twitter.com/peckshield/status/1670148905810403330?s=20
02
Reference https://twitter.com/AnciliaInc/status/1670130656586919936

Threat Assessment

Severity Level

LOW

Attack Vector Redeem Rounding Error Exploit / Other
Root Cause Protocol Logic / Borrowing and Lending
Year 2023

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