Original Dollar (OUSD) Loses $7M Through Flash Loan Attack

Original Dollar (OUSD) Loses $7M Through Flash Loan Attack

By Abhimanyu Krishnan | News | 17 Nov 2020


The Origin Dollar (OUSD) project has lost $7 million in a flash loan attack, the team announced in a blog post published on Nov 17. 

  • The attacker exploited a reentrancy bug in the protocol’s smart contracts, which took place in the middle of a mint; effectively, the supply of the tokens had been artificially increased and had been cashed in
  • The end result was that the attacker received more OUSD than the contract had assets, which he withdrew to a wallet
  • The attacker then used Tornado Cash and renBTC to wash and move the funds
  • The team is working on compensating victims as it attempts to recover the funds, and has told the hacker that a security position would be offered if he returned all of the funds
  • OUSD joins several other projects in falling victim to a flash loan attack, which has become a popular means by which attackers exploit DeFi smart contracts
  • Harvest Finance has been the biggest victim in recent weeks, losing $24 million in Oct. 26 in an attack similar to the OUSD incident
  • DeFi protocols Value and Akropolis have also suffered flash loan attacks in Nov. 2020, losing $6 million  and $2 million respectively

Abhimanyu Krishnan
Abhimanyu Krishnan

Technophile, cryptocurrency enthusiast and journalist.


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