More Markets, a lending protocol developed by More Labs on the Flow EVM network, has suffered an exploit that drained 15.5 million WFLOW from its lending reserves. Blockaid identified 15.5 million WFLOW leaving the reserve, with the tokens valued at around $9.3 million.
However, More Markets has not confirmed the amount lost, they say the investigation is ongoing.
According to Web3 security firm Blockaid, the attacker exploited the protocol’s handling of liquid staking tokens (LSTs) through its E-Mode system.
E-Mode allows users to borrow more against assets considered closely related in value. The attacker reportedly combined an Ankr bonded LST with E-Mode and exploited how More Markets calculated borrowing limits.
This allowed the attacker to take out loans against manipulated collateral and repeatedly withdraw WFLOW from the protocol’s mFlowWFLOW reserve.
Blockaid identified 15.5 million WFLOW leaving the lending reserve during the attack.
Based on WFLOW’s market price, Blockaid estimated the financial impact at around $9.3 million.
On-chain activity also showed that the attacker began moving the stolen assets shortly after the exploit. Some funds were transferred toward external wallets and bridged away from the Flow EVM ecosystem.
As of now, there is no confirmed recovery plan or recovered amount from More Markets.
The team said,
“Our team is currently investigating a claim that MORE Markets was exploited. We will share our findings shortly.”
Until the investigation is complete, the exact damage and whether any funds can be recovered remain unclear.
The security incident quickly affected Flow ecosystem tokens. Wrapped Flow (WFLOW) dropped around 9% within an hour, while FLOW fell about 8.7% to $0.0262.
The decline came as traders reacted to the exploit rather than a broad crypto market sell-off.
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
The crypto market is taking two hits at once. The $6.3 billion Binance exploit has…
Binance says customer balances are untouched by this week’s hack because the stolen crypto came…
Intel shares plunged about 30% on Friday to around $63.56, heading for their steepest one-day…
Internet Computer (ICP) is approaching a make-or-break zone, and traders have a fresh reason to…
BNB has taken a brutal hit, and the damage could extend beyond today’s sell off.…
Hyperliquid (HYPE) has climbed into the top 10 cryptocurrencies by market cap, overtaking Zcash after…
