TheStandard.io suffers a $264,000 theft via a PAXG liquidity pool exploit on Arbitrum.
Defi stablecoin protocol TheStandard.io has been hacked for $264,000, according to reports from blockchain security analysts CertiK. The hacker allegedly conducted a low liquidity exploit of PAXG on Arbitrum.
This morning @thestandard_io were exploited for 8.5k USDC.e and 280k EUROs with a combined value of $264k at current prices.
The attacker has since minted an Algebra position NFT with 222,819 EUROs.https://t.co/AS3HBh58qq
— CertiK Alert (@CertiKAlert) November 7, 2023
A low liquidity exploit is a type of attack where a threat actor takes advantage of pools with low liquidity to manipulate asset prices for financial gain. In this case, the hacker exploited the PAXG liquidity pools to steal 8,500 USDC and 280,000 Euro. Following the attack, nearly €223,000 was used by the hacker to mint an Algebra position NFT.
TheStandard.io released a statement affirming to customers that all collateral in the smart vaults was safe. The platform also paused all new EUROs minting until the exploit is patched. The platform has also requested the attacker to come forward as a white hat and negotiate a deal.
To the Exploiter, Please reach out to us. We are a small project trying to build something good for the world. We don’t have deep pockets. Your best move would be for you to put on your white hat, and contact us via DM to figure out a deal. Option two is constant monitoring. https://t.co/qiBkicg1hL
— TheStandard.io (@thestandard_io) November 7, 2023
Recently, cybercriminals have been increasingly targeting small defi and crypto projects for quick gains. In October alone, crypto scams and hacks have cost users over $32 million. TheStandard.io is actively investigating today’s exploit and also suspended the creation of any new vaults on the platform.