Analyzing how a price-manipulation attack works in DeFi.
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(Bloomberg) — It’s a day ending in Y, which means we’re going to talk about crypto hacks. In October alone, hacks, attacks and clever exploits (more about those in a moment) cost the crypto industry an estimated $700 million. Now when we talk about hacks, you might (correctly) picture sophisticated state-sponsored groups like North Korea’s Lazarus, or more run-of-the-mill attacks on Twitter or Instagram. But there’s another kind of exploit that’s raising eyebrows in crypto these days as it takes advantage of how platforms are supposed to work.
It’s called a price-manipulation attack, and it’s what happened to a DeFi platform called Mango. The mastermind behind the exploit initially walked away with a cool $100 million.
To better understand what’s at stake for DeFi, Bloomberg reporter Muyao Shen joins this episode. Also featured is Evgeny Gaevoy, CEO and founder of Wintermute, a trading platform that was itself hacked for $160 million back in September.
Follow us on Twitter @crypto, and subscribe to the Bloomberg Crypto Newsletter at https://bloom.bg/cryptonewsletterThis podcast is produced by the Bloomberg Crypto Podcast team: Supervising producer: Vicki Vergolina, Senior Producer: Janet Babin, Producers: Sharon Beriro and Muhammad Farouk, Associate Producers: Mo Andam and Ty Butler. Sound Design/Engineer: Desta Wondirad.
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