A white hat hacker stepped in to stop $2.6 million in crypto from being stolen after a security issue at Morpho Labs, a decentralized lending company.
The funds were targeted after Morpho Labs pushed a front-end update to its Morpho Blue app, its decentralized finance (DeFi) platform, on April 10. That update introduced a flaw, and a hacker had found a way to take control of a wallet and drain it.
According to a report shared by PeckShield, a blockchain security company, the attacker managed to steal $2.6 million.
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However, someone using the name “c0ffeebabe.eth”, known for ethical MEV (maximal extractable value) actions, front-ran the hacker’s transaction. This means they intercepted the stolen funds before they reached the attacker.
After the incident, Morpho Labs rolled back the update. In an April 11 post on X, the team confirmed it had been informed about the issue and took steps to fix it. They said all user funds within the main Morpho Protocol were safe and unaffected.
The team also noted that the front-end is now secure, and users do not need to take further action.
The update that caused the issue was meant to improve how transactions are handled. However, the change ended up generating some transactions incorrectly, which opened the door for the exploit. Morpho Labs said that it has found the problem and fixed it.
Meanwhile, cybersecurity firm Kaspersky recently reported that hackers are distributing fake Microsoft Office add-ins on SourceForge. What did they do? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
