Omm Finance Hack

TOTAL LOST $1.9M
Medium Other

Summarize with AI

ChatGPT Perplexity Claude Grok
Affected Chain 2023 Incident surface
Recovered - No recovery reported
All-Time Rank #676 By amount stolen
Protocol Type NFT Lending Target category

Incident Overview

Quick Summary

On January 21 2023 Omm Protocol was exploited. The hacker withdrew about $1.9M in IUSDC, USDS, bnUSD, and sICX tokens.

Details of the Exploit

On January 21 a hacker exploited a vulnerability in Omm by deploying a harmful contract. The hacker carried out 18 malicious transactions and was able to steal IUSDC, USDS, and bnUSD collateral that did not belong to them. They then used the stolen USDS as collateral to borrow sICX.

The bug was located in the Redeem function, which accepts an address as the collateral to be redeemed. The external call enabled the injection of a faulty smart contract, allowing the hacker to redeem the collateral without any prior deposit.

The hacker utilized Balanced to exchange the majority of the funds, which led to a significant deviation from the target price of 1 USD for bnUSD and other stablecoins.

They also moved IUSDC from ICON to other blockchains, such as Ethereum and Polygon, via Orbit Bridge.

Block Data Reference

Main exploit wallet:

hxc35cffe7c582cb313820fa6838dd357027ad3d07

Addresses on Ethereum and Polygon that received USDC via Orbit Bridge:

0x00082ff2…4cfd85

0x7e4d6232…efa60e

0x3b074b58…9e152a

0x49fedf6f…2eab55

0x517dfb86…dd22d6

0xA28408FD…eBa448

Incident Report

Protocol / Project Omm Finance
Date of Incident
Attack Technique Other
Classification Exchange (DEX)
Primary Source View Post-Mortem #1 View Post-Mortem #2

Protocol Information

Protocol Type NFT Lending
Official Website omm.finance/
Protocol Twitter/X @ommfinance
Team Anonymous
Source Code Unverified

Market Context at Time of Hack

Token Categories
Arbitrum Ecosystem
Protocol Links
Discord

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 Omm Finance's contract logic - root cause: exchange (dex)
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 Omm Finance, these are the critical security checks that could have prevented this incident (January 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

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