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Crypto Lender Exactly Hit by $12M Bridge Exploit

Aug 18, 2023 at 11:51 am

Exactly Protocol, a decentralized credit market operating on the Optimism network, has fallen victim to a bridge exploit that has resulted in potential losses reaching $12 million. This incident highlights the latest instance of a growing trend where various companies are targeted by hacks involving cross-chain bridges.

The hacker employed an exploiter contract on the Ethereum blockchain, utilizing it to move deposits onto the Optimism network. Subsequently, the stolen funds were bridged back to Ethereum, completing the cycle. De.Fi, a blockchain security firm, conveyed these details in a tweet.

This exploit has reportedly led to the loss of around 7,160 ether (ETH), an equivalent of $12.04 million considering current market prices.

The protocol's native governance token (EXA) experienced a decline of more than 12% as a consequence of this hack, with its current trading value recorded at $5.51 according to CoinMarketCap.

This security breach has occurred concurrently with a notable downturn across the broader cryptocurrency market. Assets such as XRP, Litecoin (LTC), and Bitcoin Cash (BCH) have witnessed double-digit declines, coinciding with liquidation of approximately $1 billion in positions over a 24-hour period.

Cross-chain bridges have emerged as a common target for hackers due to the relatively new and innovative nature of this technology. Last year, it was estimated that bridge-related hacks resulted in losses exceeding $2 billion, according to data from Chainalysis.

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