Crypto Opinions & News Inverse Finance Stung for $1.2 Million via Flash Loan Attack

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upnorth

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A decentralized autonomous organization (DAO) called Inverse Finance has been robbed of cryptocurrency somehow exchangeable for $1.2 million, just two months after being taken for $15.6 million.

"Inverse Finance’s Frontier money market was subject to an oracle price manipulation incident that resulted in a net loss of $5.83 million in DOLA with the attacker earning a total of $1.2 million," the organization said on Thursday in a post attributed to its Head of Growth "Patb." And Inverse Finance would like its funds back. Enumerating the steps the DAO intends to take in response to the incident, Patb said, "First, we encourage the person(s) behind this incident to return the funds to the Inverse Finance DAO in return for a generous bounty."

That appears unlikely given reports that the attacker has routed the funds through Tornado Cash, a cryptocurrency mixing or tumbling protocol designed to obscure where funds came from. Coincidentally, the service is popular for money laundering. The $5.83 million net loss represents funds borrowed by the attacker from the DAO to conduct the attack. So Inverse Finance is counting it as bad debt rather than funds that need to be repaid to any individual. The DAO, founded by Nour Haridy in 2020, doesn't provide much detail about those running things, if anyone can be said to be running things in a "decentralized autonomous organization."

Inverse Finance made the news in April after being exploited for $15.6 million.
 

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