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TheStandard.io suffers theft of $264,000 through an exploit from the PAXG liquidity pool on Arbitrum.
Defi stablecoin protocol TheStandard.io has been hacked for $264,000, blockchain security analysts report CertiK. The hacker allegedly performed a PAXG low liquidity exploit on Arbitrum.
A low liquidity exploit is a type of attack in which a threat actor leverages groups with low liquidity to manipulate asset prices for financial gain. In this case, the hacker took advantage of PAXG’s liquidity pools to steal 8,500 USDC and 280,000 euros. After the attack, the hacker used almost 223,000 euros to mint an algebra position nft.
TheStandard.io issued a statement affirming to customers that all collateral in smart vaults were secure. The platform also stopped the minting of new EUROs until the exploit is patched. The platform also has required for the attacker to present himself as a white hat and negotiate a deal.
Recently, cybercriminals have increasingly targeted small defi and crypto projects to make quick profits. In October alone, cryptocurrency scams and hacks have cost users more than $32 million. TheStandard.io is actively investigating today’s exploit and has also suspended the creation of new vaults on the platform.