Incident Overview
A suspicious flashloan caused a slippage on the MTDAO (MT) project, leading to a 90% drop in value, and $280k worth of funds lost.
On October 16th 2022, a suspicious flashloan occurred on the MTDAO (MT) project, which caused a significant slippage and a drop of around 90% in the value of the token. The flashloan was used to obtain 730 BNB, which is equivalent to around $280k. The funds were then sent to EOA 0xb2e8, which deposited them into TornadoCash, a privacy-focused Ethereum mixer.
The rest of the funds, approximately $219k, were bridged to Ethereum mainnet and remain in EOA 0xD0665. It is unclear who is behind the exploit, and investigations are ongoing.
Incident Report
Protocol Information
Market Context at Time of Hack
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.
What Auditors Should Check
If you're auditing a protocol with similar architecture to MTDAO, these are the critical security checks that could have prevented this incident (October 2022).
- Verify all logic paths related to Flash Loan Attack are guarded by proper access controls and input validation - see the Flash Loans Attacks 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.
Free TrialRelated Attack Classes
The technique used in this hack maps to these vulnerability classes in our security curriculum:
Sources & References
- 01
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02
Web Archive https://archive.ph/IFcyI
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