Meter platform incurred $4.4 million losses: Exploit having a cascade effect

A massive hack on the Meter platform occurred recently and caused the entity to incur significant losses.
Amount of ETH was deposited to the Meter platform, which the attacker used to mint tokens, stated the Meter team.
The hack had a cascade effect on the Moonriver ecosystem, resulting in an advantage for the opportunists.

The Meter Passport token bridge platform has recently witnessed a huge loss caused by a smart contract hack.

There was a loss of around $4.4 million. Along with this, it caused Hundred Finance to lose $3.3 million via under-collateralized loans.

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Meter Passport(MTRG) is a token bridge reconcilable with the Ethereum network and its sidechains. The bridge side that got affected is Moonriver.

Moonriver is a smart contract platform that is based on Polkadot’s Kusama network. And Hundred Finance is a cryptocurrency lending platform that is based on Compound Finance’s code.

The incident took place on February 5. Over the course of various transactions, around $4.4 million were minted via a wrong trust assumption in the code. The amount was in Binance Coin(BNB) and wETH. According to the Meter team, a capricious amount of Ethereum(ETH) coins was deposited to the Meter platform. After which, the hacker used the vulnerability to mint the Tokens.

Community, we really appreciate everyone’s patience and support as we work to get back up and running after this morning’s exploit.
We have detailed everything in the below thread:
— ⚡️Meter.io⚡️ (@Meter_IO) February 5, 2022

The Moonriver ecosystem, based on Kusama, was affected quite widely. First, the hacker unloaded the Metre platform of its BNB and wETH reserves and then sold the BNB on the decentralized exchange Sushiswap.

This resulted in a 77% crash in the BNB price on the Moonriver. This led to people buying BNB taking advantage of the dip. They used the tokens on Hundred Finance as collaterals to take out FRAX, ETH, and MIM loans.

2/4. Accounts were able to purchase BNB.bsc at a reduced price and use these tokens as collateral at the global Chainlink price to borrow uncompromised assets on our platform. Of these, MIM and FRAX are currently impacted.
— Hundred Finance (@HundredFinance) February 6, 2022

Though two of the loans were repaid, the ETH loan was totally returned. And the Hundred teams approached the community to ask that they return the Meter platform with its BNB tokens used as collaterals.

The Meter team has vowed to reimburse the users and Hundred Finance for all the losses. The pseudonymous founder of Hundred Finance by the name of VFat said that Meter did accept the hack responsibility and intended to use their native token for reimbursement. As of now, they are gathering the amounts and addresses.

According to a representative from Hundred Finance, they would wait a day before moving forward to reopen the MIM and FRAX markets on the platform.

The Meter Passport Bridge and Hundred Finance reached out and updated the communities through their Twitter accounts. And the Metre platform team has set aside an amount of $4.4 million for reimbursements of the losses.

Source: https://www.thecoinrepublic.com/2022/02/09/meter-platform-incurred-4-4-million-losses-exploit-having-a-cascade-effect/