TheStandard.io lost $264,000 via a PAXG liquidity pool vulnerability on Arbitrum.
Defi stablecoin protocol TheStandard.io has been hacked, resulting in losses of $264,000, according to a report by a blockchain security analyst Certification. Hackers allegedly exploited the low liquidity of PAXG on Arbitrum.
Low liquidity exploits are attacks in which threat actors take advantage of low-liquidity mining pools to manipulate asset prices for financial gain. In this case, hackers used the PAXG liquidity pool to steal 8,500 USDC and 280,000 euros. After the attack, hackers used nearly 223,000 euros to mint Algebra Position NFTs.
TheStandard.io released a statement confirming to customers that all collateral in the smart vault is safe. The platform has also suspended all minting of new euros until the vulnerability is fixed.The platform also features required The attacker comes forward as a white hat and negotiates a deal.
Recently, cybercriminals have increasingly targeted small DeFi and crypto projects in order to make quick profits. In October alone, cryptocurrency scams and hacks cost users more than $32 million. TheStandard.io is actively investigating today’s breach and has suspended the creation of any new vaults on the platform.