Coinbase’s L2 Chain Base Attacked, About $1 Million Lost

Crypto platform Coinbase’s Layer 2 network ‘Base’ chain has suffered a massive price manipulation breach after an unverified loan contract was attacked, causing a loss of $1 Million.

In the early hours of today, CertiK Alert monitoring informed users on X about the attack saying that the price manipulation attack on the Base chain affected the unverified loan contract starting with address 0x5c52.

#CertiKInsight ?

We have detected a price manipulation attack on Base chain affecting unverified lending contracts, including
0x5c52649d3c1e1d0ddf6a46e1c25a25d9fb148af8

The exploiter manipulated the price of WETH and Sui and gained ~$1M tokens by excessive borrowing.

Stay…

— CertiK Alert (@CertiKAlert) October 25, 2024

According to CertiK’s post on X, “The exploiter manipulated the price of WETH and Sui and gained ~$1M tokens by excessive borrowing.”

Courtesy: Certik X account

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The crypto monitoring platform also informed that the oracle used in lending contract verification, 0xc112e41c..42e7e0c relies on a single pair since deployment 6 days ago and only possesses ~$400K liquidity.

This is the second consecutive contract manipulation incident reported by the platform within two days. On October 24, several suspicious transactions on Polygon affecting unverified NAS contract 0x5d6084Bf..F36Ac7 were detected.

The attacker got the hold of a large amount of NAS tokens and then swapped them for USDT.

There have been no comments from Base on this matter, as of yet. The platform had recently announced the launch of its permissionless Fault Proofs on October 30, which is aimed at providing a more secure environment by eliminating trusted third parties. The new upgrade will also allow users to monitor and challenge invalid withdrawals.

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