Big Liquidation: This Cryptocurrency Platform Has Been Hacked!

Arbitrum-based DeFi project Ede Finance was devastated by a hack that seized $580,000 in cryptocurrency and led to the liquidation of its own users.

Ede Finance made a ‘wrong decision’

The Ede Finance team acknowledged that it had its share in manipulating prices after the protocol was exploited for nearly half a million dollars. The hacker group behind the attack reports that they have good intentions and want to detect security vulnerabilities beforehand.

According to a report from blockchain security firm PeckShield, the Ede Finance team was responsible for the vulnerability. The protocol had a backdoor that allowed users to liquidate their positions.

Ede Finance developers said, “Yes, we admit we made the wrong decision to manipulate the price. However, our intention was to blacklist those who have previously abused the system, fully aware that all transactions are recorded on the Blockchain. We did not intend to misuse users’ funds as it would leave a traceable record.” said.

The team said it would later remove the smart contract that provided this behavior. They also said they would accept the award terms and use their own funds to close the gap. The team offered 5% of the team’s token allocation for pointing out other vulnerabilities to the exploiter. The events led to a more than 50% drop in the price of the cryptocurrency.

Half-million-dollar cryptocurrency hack leads to price crash

Ede Finance’s native token, EDE, lost more than 50% at one point after the news. Its price fell from $2.43 to $1.18 during the day. The project team did not make a statement on social media about what is happening at the moment.

Meanwhile, @tervelix, a community member from Twitter, summarizes what happened in the hack attack:

• Hacker claimed that the Ede team has a bot that will liquidate any position at will.
• The hacker promised to return the funds (-10% reward) if the team accepts this claim.
• The team accepted the claim and the terms. The bot was launched to prevent possible security vulnerabilities.
• In addition, the team offered to give 5% of the token allocation to the hacker.

As Kriptokoin.com, we recently reported that Jimbos Protocol, another Arbitrum-based altcoin project, was hacked.

About Ede Finance

El Dorado Exchange (EDE), by its full name, is a decentralized exchange focused on building a unified blockchain for decentralized social trading. It allows its users to trade up to 50x the biggest coins like BTC, ETH and BNB with low fees without price difference. Users can print ESBT, Soul Bound NFT and earn rewards with them for increased interaction with the EDE platform. Liquidity providers provide liquidity using an indexed token, ELP, provide protection with stablecoins, earning them transaction fees and additional token rewards.