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Crypto DeFi

Rocket blockchain loses ~$287K in attack, withdrawals paused

L1 blockchain Rocket reported a Sept. 5 on-chain attack causing a loss of approximately $287,000. The attacker exploited a dormant perpetual market, using one-time accounts to post inflated price orders and self-trade, generating fake profits and bankrupting the accounts, then withdrew funds from the Bridge. All deposits, withdrawals, and trading are paused. The team is cooperating with security firms and law enforcement to trace and freeze stolen funds, and is prioritizing refunds for small accounts.

Original source

AI take

This incident highlights the persistent vulnerability of dormant protocol components, which can be repurposed by attackers to manipulate pricing and drain bridge liquidity. The pause on all deposits, withdrawals, and trading signals a full operational halt, underscoring the severity for users whose funds are now locked. The focus on small-account refunds first suggests a prioritization of retail protection, but the broader question is whether the bridge's design will be re-audited to prevent similar exploits in other inactive markets. How the team balances reopening timelines with forensic thoroughness will be key to restoring trust.

Generated by AI for reference only.

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