Hacker Steals $90 million from Mirror Protocol in October on Terra Classic

A hacker stole $90 million from Mirror Protocol on Terra Classic. The attack was unnoticed for seven months.

Mirror Protocol lost $90 million to hacker
Mirror Protocol

According to a Twitter user named FatMan, Mirror Protocol was hacked for around $90 million on Terra Classic on October 8, 2021. However, the information was only revealed on May 26, 2022, seven months after the event.

The attacker stole $89,706,164.03 from the protocol using an exploit that allowed them to unlock collateral from the lock contract "over and over again at no effort and little risk," according to FatMan, who found the compromise through "pure serendipity."

In addition, Terra Classic on-chain statistics say that the attacker was able to release UST funds from the protocol multiple times for only $17.54 per time.

Mirror Protocol is a decentralized platform that allows users to construct digital synthetics that are designed to imitate the price of real-world commodities like equities.

Mirror's fundamental contracts were developed using Terra Classic. Its assets, on the other hand, are available on Ethereum and Binance Smart Chain (BSC).

In addition, after the issue was discovered by Mirror community members on May 17, developers discreetly fixed it on May 9. The developer team had made no mention of whether the bug had been found or exploited previously.

The Mirror Protocol team has yet to state the exploit, prompting community outrage. On the other hand, FatMan believes that there is no "compelling proof" that the hacker was an insider.

It isn't the first time a DeFi exploit has taken a long time to be discovered, but this is by far the longest. The Ronin crew had previously waited six days to realize they'd been duped out of $600 million.