Arbitrum DEX Hacked: WOOFi Loses $8 Million in Flash Loan Exploit In a devastating blow, the cross-chain decentralized exchange WOOFi on Arbitrum [ARB] has fallen victim to an
$8 million flash loan exploit. This type of attack allows hackers to manipulate the financial system by borrowing funds without collateral.
The attacker's goal? To create market imbalances and exploit vulnerabilities in decentralized protocols like WOOFi. By strategically repaying the loan during a dip in prices, they managed to siphon off approximately 2,000 ETH.
While WOOFi investigates, users can breathe a sigh of relief as their assets in Earn vaults and WOOFi stake remain secure. However, new threats emerge as
impersonators try to take advantage of unsuspecting WOO holders.
Despite the setback, the sentiment on Arbitrum [ARB] remains neutral, with no significant impact on the price of ARB tokens. As the investigation continues, the community stays vigilant against further attacks.
Stay tuned for updates as the DeFi landscape navigates these treacherous waters.
