Meter Passport Token Bridge Hack: What You Need to Know

Understanding the Meter Passport Hack

In a jaw-dropping turn of events, the Meter Passport token bridge platform found itself on the losing end of a hacking spree, resulting in combined losses of approximately $4.4 million due to a smart contract exploit. For those unversed in the crypto realm, this unfortunate incident has set off alarm bells across the digital finance community and left many scratching their heads.

How the Hack Unfolded

The attack struck on a Saturday afternoon, specifically at 2 PM UTC, and spanned several transactions. Hackers took advantage of what was described as a “wrong trust assumption” in the Meter code. This scenario unfolded when an arbitrary amount of Ether (ETH) was deposited into Meter, resulting in the unauthorized minting of sizeable quantities of Binance Coin (BNB) and wETH.

The Consequences for Hundred Finance

As the mayhem escalated, Hundred Finance—a crypto lending platform built on Compound Finance’s code—also bore the brunt, suffering a staggering $3.3 million loss from under-collateralized loans. Talk about collateral damage! This downward spiral saw users leveraging the inexpensive BNB as collateral to borrow ETH, FRAX, and MIM loans, leading to a chaotic supply crisis.

The Fallout: Market Reactions

In true chaotic fashion, the price of BNB plummeted by 77% on the Moonriver side following the attack. It’s not every day you see such price drops that rival the worst days on Wall Street! Opportunistic buyers seized the dip, quick to use their cheap BNB as collateral, complicating the situation even further for Hundred Finance.

Steps Taken and Future Outlook

In the wake of this debacle, the Meter team has pledged to reimburse those affected, committing $4.4 million in MTRG tokens to cover initial losses. Vfat, the elusive founder of Hundred Finance, confirmed their prompt response in reaching out to the parties involved, hoping to resolve the chaos.

Final Thoughts: Learning from Mistakes

With security being an ever-pressing issue in the crypto world, the Meter team has echoed sentiments surrounding the need for stronger systems. As for Hundred Finance, they’re tightening their grip on asset safety, proving that even in the world of digital currency, it’s better to be safe than sorry. One thing is clear: this incident will be a pivotal chapter in the ongoing saga of blockchain security!