HomeNEWSAcala addresses exploitation of 1.276 billion aUSD on its network

Acala addresses exploitation of 1.276 billion aUSD on its network

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Following the recent attack on the Acala Network yesterday, the Acala team has issued an ‘incident overview’ regarding the attack. Via a post on its Discord page, the network revealed how a misconfiguration of its iBTC/aUSD gave room for the attack. According to the post, the attacker pounced on this issue to mint about 1.267 billion aUSD.

Consequently, the team discloses how the aUSD were transferred to the wallet addresses of some iBTC/aUSD Lp contributors when they claim their incentives. According to the post, the team has recovered a massive portion of the funds. As revealed, about 99% of the fund are currently on the Acala Chain. While the attackers had swapped a little portion of it for ACA and some tokens before sending them out of the chain.

In reference to the post, Acala Network publicised that the iBTC/aUSD pool became enacted with misconfiguration, thus aiding the massive mining by 22:41 UTC on Saturday. The issue came to the notice of the Network contributor around 23:00 UTC, compelling them to announce the situation. Around 01:17 UTC yesterday, the network halted transactions on the chain to tackle the exploit. This manifested upon the completion of an emergency poll. As disclosed, the exploitation didn’t continue further within the period of the poll and the subsequent move to halt transactions.

Possible Resolution Proposed By Acala Network

The Acala Network team added that the decision to manage the remnant of the funds lies with a future resolution by community members. However, the firm assures members that the situation is under control, and efforts are underway to trace the hacker’s wallets. These assurances will give a sense of relief to concerned community members.

The team added that its working with partners and contributors to pin down the attackers. Furthermore, the Acala Network team disclosed that about 16 different wallets partook in the attack. Also, the team assured community members that it would continue to update them as the situation unfolds. Likewise, the Acala Network team admitted that its willing to listen to proposals from community members on how ro resolve the error minting of aUSD.

Current Market Situation Of aUSD

Meanwhile, the attack is expected to have a significant impact on the market situation of the aUSD. According to Data provided by Coinmarketcap, the stablecoin plunged by 18.26% about 24 hours before the attack. At the manifestation of the attack, the token lost its peg and maintained a $0.9194 against its 1:1 value ratio. Currently, the token has dropped further, sitting at $0.009544.

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David Idowu
David Idowu
David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.

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