New Gold Protocol Hack

On September 18, 2025, the NGP token from NewGold Protocol was exploited for approximately $2 million, causing the token to crash 88% within one hour. The attacker used a sophisticated flash loan manipulation attack and deposited the stolen funds (443.8 ETH) into Tornado Cash for laundering.

The attacker executed a complex flash loan attack by borrowing $211 million to manipulate the NGP token's balance mechanics. The exploit targeted a flaw in NGP's transfer logic where 35% of any selling amount is deducted from the pool balance and synced. By flash loaning massive amounts and selling 1.36 million NGP tokens, the attacker reduced the NGP reserve value by 13.6 million times, from 477,000 to just 0.035 tokens.

This extreme manipulation broke the automated market maker's constant product formula (k=xy), allowing the exploiter to completely drain the victim pool while maintaining the appearance of legitimate trading activity. The attack demonstrates how poorly designed tokenomics can be exploited through large-scale market manipulation.

Exploit tx:

https://bscscan.com/tx/0xc2066e0d…4df8e1