- Amount Lost: $300,000.00
- Funds Returned: $0.00
- Category: Exchange (DEX)
- Date: 2023-1-7
Quick Summary
Mycelium ETH/USDT pool suffered a loss of ~300K due to an arbitrage bot attack.
Details of the Exploit
An attack by arbitrage bots caused a loss of around $300,000 to the Mycelium ETH/USDT pool. The bots identified a significant price difference in the ETH prices on the platform and took advantage of the liquidity. This price discrepancy was due to the highly volatile ETH/USDT trading pair price, which was broadcasted by the Bitfinex API at approximately 02:45 AM AEST time. Meanwhile, Binance disrupted the system by blocking the US-related IP used by Mycelium, which prevented the system from rebalancing the price independently.
Proof Links: