Incident Overview
On the 14th of May Predy finance on Arbitrum L2 network was exploited with losses about 464k USD.
On May 14th, Predy Finance on Arbitrum was exploited due to a vulnerability in the Lending Pool, which did not properly handle small positions, leading to arithmetic issues.
Some of the funds, amounting to $293,000, were bridged to ETH and parked at address 0xeDe4E. The remaining $217,000 is still at the attacker's address on Arbitrum, 0x76b02.
Exploiters:
https://arbiscan.io/address/0x76b02ab4…c6d008
https://arbiscan.io/address/0xe1783b01…936653
Exploiter contract:
https://arbiscan.io/address/0x8affdd35…80cad9
Exploit tx example:
https://arbiscan.io/tx/0xbe163f65…78f50f
Incident Report
Protocol Information
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 Predy finance, these are the critical security checks that could have prevented this incident (May 2024).
- 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
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