OMNI NFT Protocol Loses 1,300 ETH To A Reentrancy Attack

A hacker made a reentrancy attack recently against the beta version of the NFT money market, OMNI protocol. However, the attacker took 1,300 ETH in OMNI’s internal testing funds, not actual money.

OMNI Protocol Is Victim Of Latest Hack

A breach on the NFT system, OMNI, resulted in a loss of about 1,300 ETH. The attack on the NFT market happened on the 10th of July.

However, this is a worthless fund as no user assets were compromised. The attacker only took internal testing funds from the NFT protocol. 

OMNI was swift to clarify that just the private testing funds were affected. Also, the platform noted the testing process was still in the beta stage. 

The team has put the protocol on hold as they look into what caused the attack. According to PeckShield, it appeared to be a reentrancy hack on the platform. 

According to the cryptographic security firm, BlockSec, the hack was caused by the old-school reentrancy of onERC721Received. Later, BlockSec revealed the flaws in the smart contracts. The company also demonstrated how the attacker had borrowed ETH using NFTs. 

However, the borrowed ETH became a bad debt that the platform does not have to pay. Meanwhile, the team has not provided a comprehensive analysis of the attack. 

They were lucky that the hacker took just money used for internal testing. Furthermore, attacks on the NFT and DeFi space have increased, with criminals stealing millions of dollars.

Hackers Continue To Target The NFT Space

Meanwhile, sales have slowed down in the NFT market. However, it is still among the most active segments in the cryptocurrency industry. This has made it a top target for cybercriminals and hackers. 

These fraudsters look for opportunities to compromise systems and steal money. Such occurrences have happened quite a few times in 2022.

XCarnival, an NFT lending pool, lost around $4 million due to an attack in 2022. Moreover, the hacker also took a 1,500 ETH reward from the protocol. 

Furthermore, multiple phishing efforts have affected Discord and other social platforms. Hackers also made these attacks against the Bored Ape Yacht Club. However, the Ronin Bridge hack is the most popular attack in the NFT space.

This resulted in the theft of more than $600 million. Analysts stated that hackers from North Korea were responsible for the event. 

However, North Korea has recently seen the value of its stolen cryptocurrency decline. This is due to the ongoing market slump in the crypto sector.

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