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Yep another wild week in crypto. This week we talk about the Hydra darknet bust, Lapsus$ team takedown, an update on the Ronin Bridge hack, a Bubble Gum Ape scam, and we spend some time on the Inverse Finance Hack. Welcome degens. Come one, come all!
Under his online moniker “White” or “Breachbase” the teenager, who is autistic, is said to be behind the prolific Lapsus$ hacker crew, which is believed to be based in South America.
The victim entered into a direct swap trade with the scammer via a third-party service called swap.kiwi. Unlike regular marketplaces like OpenSea, platforms like swapkiwi allow direct NFT swaps between collectors, reducing transaction (“gas”) fees.
Unknown to s27, the other participant in the trade put up knock-off NFTs in exchange for s27’s legitimate Bored Ape and Mutant Apes. The scammer used images of actual Bored Apes to create fake replicas and uploaded the same ones to OpenSea.
-https://www.theblockcrypto.com/post/140702/bored-ape-holder-loses-nfts-worth-567000-to-a-scammer
the world’s largest darknet market by revenue.Hydra specialized in same-day ‘dead drop’ services, where drug dealers (vendors) hide packages in public places before informing customers of the pick-up locationThe market primarily caters to criminals in Russia and surrounding nations. “Treasuremen,” or dealers connected with the site, push drugs throughout the region by hiding them in geo-tagged pickup locations.The website launched in 2015 selling drugs, hacked materials, forged documents and illegal digital services such as Bitcoin-mixing - which cyber-criminals use to launder stolen or extorted digital coins.The site was written in Russian, with sellers located in Russia, Ukraine, Belarus, Kazakhstan and surrounding countries.Police say 17 million customers and more than 19,000 seller accounts were registered on the marketplace, which now carries a police seizure notice.after a tip-off, German police seized the Hydras servers and confiscated €23m (£16.7m) in Bitcoin. 25.2 million USDHydra was seemingly impervious to police attempts to stop it.
Germany’s federal police shut down the Russia-based Hydra Market, the world’s largest darknet market by revenue. Later in the day, the Justice Department followed up by indicting one of Hydra’s key operators, and the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Hydra, adding more than 100 of its cryptocurrency addresses to the SDN list as identifiers.In 2021, Hydra received more than $1.7 billion worth of cryptocurrency, which accounts for over 75% of all darknet market revenue globally.
Inverse Finance is a community of cryptocurrency enthusiasts organized as a Decentralized Autonomous Organization (DAO), started on the 26th of December 2020. Inverse DAO governs and develops a suite of permissionless and decentralized finance tools using blockchain smart contract technology. The code base is open-source, and maintained by the community.
Master the Game Of Positive Sum DeFiHere at Inverse Finance, we’re decentralized by design, moving past reckless, outdated systems towards a better solution: Positive Sum Defi. We help you maximize your earnings via revenue sharing, accumulate high yields with sustainable APYs, and benefit from low-cost stable coin borrowing. Join our community to grow and thrive.
This morning Inverse Finance’s money market, Anchor, was subject to a capital-intensive manipulation of the INV/ETH price oracle on Sushiswap, resulting in a sharp rise in the price of INV which subsequently enabled the attacker to borrow $15.6 million in DOLA, ETH, WBTC, & YFI
A professionally executed hack allowed an anonymous actor to manipulate the price of INV and help themself to an exclusive deal from the ETH based lending protocol.
- First of all, the exploiter withdrew 901 ETH from Tornado Cash.
- Then they transferred 1.5 ETH to 241 clean addresses via Disperse and deployed five different smart contracts, of which only one was real.
- He then swapped 500 ETH to 1.7k INV so that it went through the INV-WETH pair on SushiSwap, significantly changing the price due to low liquidity (50x).
- At the same time, he began spamming transactions with an exploit to be the first to get into the next block and get an inflated price from SushiSwap.
The Inverse Finance oracle, through Keeper Network, ended up using SushiSwap TWAP as an oracle, returning the price that made the INV token on the platform incredibly expensive.
The attacker then deposited his 1.7k INV (fair price - $644k) as collateral and (permanently) borrowed $15.6M.
Welcome! I, Degen is a podcast about crypto technology, security, and culture. With a healthy balance of enthusiasm and skepticism, we cut through the misinformation and hype in search of a signal in the noise. Our weekly round-up will keep you updated on the latest in crypto hacks and security. With our open-source audio audits, we interview founders and hackers to surface relevant info about how to stay safe in crypto land.