- An estimated 1.1 million TEMPLE was sold off
- The root cause of the exploit was insufficient access control to the migrateStake function, according to BlockSec
TempleDAO, a yield-farming DeFi protocol, has been exploited for around $2.34 million.
All funds exploited were converted to ether and then moved to a new wallet, where they now sit.
The pseudonymous Doc Peppercorn, a contributor to TempleDAO, posted on its Discord group that a series of transactions through Stax Finance, a TempleDAO-affiliated dapp, led to the sell-off of an estimated 1.1 million TEMPLE, the primary token of the Temple Protocol.
“We are investigating what happened so we can bring you the full picture of how this occurred, what we did to resolve and any further remediation steps,” he wrote.
The root cause of the exploit was insufficient access control to a specific function in the Stax smart contract, according to security firm BlockSec.
Prior to the exploit, TempleDAO’s protocol’s total value locked was about $57 million, according to DeFiLlama. The exploit amounted to roughly 4% of the protocol’s assets.
According to a recent report published by bug bounty and security services platform, Immunefi, DeFi protocols remain a key target for exploits in comparison to centralized finance — representing a total of 98.8% of losses in Q3 of 2022 — with the Nomad Bridge hack and the Wintermute exploit making up the majority of the losses.
The two most targeted chains were Binance’s BNB Chain, which was recently drained of over 2 million BNB, and Ethereum, according to the report.
At the time when the report was published, the BNB Chain had suffered from 16 individual attacks resulting in the loss of 28.6% of all losses across targeted chains, and Ethereum reported 13 incidents which represented 23.2% of total losses.
The exploiter’s address was originally funded from an address on the Binance Exchange, so it’s possible the exchange may have know-your-customer information on the culprit.
A Binance spokesperson did not immediately respond to a request for comment.
This is a developing story and may be updated.
Attend DAS:LONDON and hear how the largest TradFi and crypto institutions see the future of crypto’s institutional adoption. Register here.