El Dorado Exchange (EDE) Finance would be located at this time in fine sheets. Because in addition to being a real sieve for hackers, this DeFi platform has also been accused of price manipulation. Explanations!
Ede Finance accused of price manipulation
For Joey Krug, director of investments at Pantera, DeFi was not affected by the 2022 bear market. It could therefore serve as a springboard for the next bull run.
But like most crypto projects, DeFi is not spared from hacking and all kinds of malicious acts from outside as well as inside.
This is the case of EDE Finance, whose situation has aroused the interest of The Block. First, the specialized media spoke ofan attack that caused the loss of approximately 580,000 dollars to the DeFi company.
Strangely enough, the hacker claims to belong to the “white hats” category. What makes him a good hacker. On the strength of this ameliorative status, the pirate justified his coup by a desire toexpose Ede Finance’s suspicious modus operandi.
He clarified to PeckShield analysts that the main developers of this Arbitrum-based project would facilitate the settlement of transactions of all its users on the protocol. In other words, the barons of Ede Finance had been accustomed to stealing his clients’ assets for ages.
These analysts also reported that this recurring practice required theuse of false prices in order to easily embezzle the funds.
Reason why the hacker asked the developers of Ede Finance to admit their wrong if they want to recover the missing $580,000. However, he asked them for a 10% bonus. In return, it will provide crucial information on other flaws in the platform.
The team’s confession
Here is the mea culpa from the developers of Ede Finance:
” Yes, we recognize that we made the ill-advised decision to manipulate the price. However, our intention was to blacklist those who had previously exploited the system, knowing that all transactions are recorded on the blockchain. We did not seek to embezzle users’ funds, as this would have left a mark. »
In addition, the team has promised the removal of the smart contract which authorizes this practice.
As for the hacker’s bounty request, El Dorado Exchange Finance agreed to its terms. He was even promised 5% of the team’s token allocation for his great help with other vulnerabilities.
Another point to remember: the EDE posted a 51% drop in the last 24 hours.
This story reminds us deposed FTX CEO Sam Bankman-Fried who did not hesitate, at the time of his reign, to draw on clients’ funds to secretly fuel some of his projects.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
