DeFi Protocol's TND Token Plunges and Then Rebounds After White Hat Hack

A white hat hacker borrowed $1.6 million in assets despite depositing one GMX token.

AccessTimeIconMar 7, 2023 at 11:19 a.m. UTC
Updated Mar 7, 2023 at 8:34 p.m. UTC

TND, the native token of decentralized-finance (DeFi) protocol, fell by 34% before recovering on Tuesday after the platform was hit by a white hat hacker.

The token, which trades mostly on decentralized exchange Uniswap, was changing hands at $1.99 when the firm paused withdrawals. It was recently trading at $2.82 after the firm said it is in talks with the hacker.

"We are investigating an unusual amount of borrows that came through the protocol- in the meantime, we have paused all borrowing. Thank you for your patience," the team wrote on Twitter.

Blockchain sleuth Lookonchain said that due to a misconfigured pricing oracle, a white hat attacker borrowed $1.59 million in assets despite depositing only one GMX token worth $71.

A white hat hacker is someone who attacks a platform before returning the loot.

UPDATE (Mar. 7, 12:46 UTC): Updates headline and story, updates token movement.


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Oliver Knight

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

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