DeFi Protocol Moola Market Becomes Latest Victim In Series Of Hacks Against Digital Finance

The DeFi market continues to struggle with the increasing number of hacks that affect both investors and the DeFi protocols themselves. With each year, the DeFi market experiences a major hack and an increased volume of hacks. Therefore, as a whole, the market has seriously been suffering.

In the past month alone, the market has lost over $700 million to various DeFi hacks. And as for the year so far, the market has managed to lose as much as $3 billion, and the year has yet to end. If the market continues to lose money to these hackers at the same rate, the market could be in serious trouble.

And as the market struggles to recover from one of the hacks, news about another hack comes around. The latest DeFi protocol to fall victim to this growing issue was the Moola Markets. The firm managed to lose $8.4 million in a single hack.

And even though they were able to get most of their funds back following the hack, the larger issue of the DeFi market getting hacked as a whole still remains.

Losing $8.4 Million

The intentions behind why hackers continue to steal from the DeFi market is simple enough, as plenty of DeFi protocols have yet to properly audit their firms. Without a proper audit, they are low-hanging fruit that hackers will often steal from to make a quick profit.

There is also the fact that many of the hackers have managed to find an exploit in the system, which means that some hacking groups can just easily walk into the firm and walk away with their cash.

However, in the most recent hack, what took most individuals by surprise was the fact that the hacker returned most of the money that they stole from the company. While it is certainly good news, it does bring a question to the hacker’s motivation and why they were stealing ink in the first place.

Getting Back 93%

Of course, what really took the firm by surprise was that the group of hackers returned over 90% of the cash that they stole. Therefore, Moola won’t be stopping its operations because of this hack and will still go about things like business as usual.

A Very Simple Attack

What is making analysts worried is that the hackers were able to steal close to $10 million through a very simple attack. The hacker simply borrowed money from Moola, used it as collateral, pumped up the price of the token, and then withdrew it.

The simplicity of the attack is what is really scary since just about anyone can replicate the entire process and get money out the same way.