Acala’s Stablecoin Falls 99% Following Hacker Attack

Dejan Cvetnarevic
Dejan Cvetnarevic

Updated · Aug 15, 2022

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aUSD lost much of its value on Sunday after hackers minted 1.28 billion tokens from thin air.

A Bug Exploited

Hackers exploited a bug in the platform’s new liquidity pool soon after it went live on Sunday. Acala reported an iBTC/aUSD configuration caused the error.

Its developers have disabled the transfer functionality of the “erroneously minted aUSD,” causing it to remain on the parachain. The attacker’s wallet still contains about 1.27 billion aUSD.

The network has turned to white hat hackers to help return all stolen funds to Polkadot and Moonbeam addresses.

Acala’s developers are also trying to trace the on-chain activity to resolve the aUSD error mint and restore the stablecoin’s peg.

According to reports, the attacker who minted 1.28 billion aUSD was not the only one to exploit the bug. Several other users also managed to steal thousands of dollars worth of DOT from Acala's liquidity pool.

Acala launched aUSD earlier this year and has successfully held its soft peg to the US dollar until the attack. Its price has since plunged from about $1.03 per token to just $0.009. With the stablecoin now practically worthless, many users are concerned.

The network did not address any comments at press time. However, it has posted regular updates on Twitter ever since the attack occurred.

Previous Attacks

Earlier this year, Stablecoin Protocol Beanstalk lost over $180 million in a hacker attack.

Crypto.com also fell victim to hackers who compromised hundreds of user accounts and has since hardened its infrastructure in response to the incident.

Sources.

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Dejan Cvetnarevic

Dejan Cvetnarevic

Dejan is a techie at heart who always dreamed of turning his fascination with gaming into a career. He finds working for TechJury a perfect opportunity to express his views of all kinds of different software. Being an avid reader, particularly of fantasy and sci-fi, Dejan pursued a degree in English Language and Literature. When not at his computer, he’s watching sports or playing tabletop games.

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