zkSync-based DEX Merlin Exploited of $1.82M as per PeckShield

• Community members have requested Circle to hold the funds pending investigation.
• No one from the Merlin team has commented on the situation on Twitter.

On April 26th, a hacker stole $1.82 million from the decentralized exchange Merlin. PeckShield and other members of the community have brought to light the exchange’s exploitation and provided the addresses of the exploiters. The funds were transferred from zkSync to Ethereum in the form of USDC tokens.

While some community members have requested that Circle hold the funds pending further investigation, it’s likely too soon for Circle to do anything at this point. No one from the Merlin team has commented on the situation on Twitter. The crypto community, however, has been vocal about the occurrence.

Smart Contract Modified

The attacker drained the Merlin DEX’s liquidity. The project’s use of zkSync makes it a cutting-edge program on the network. The fact that the attacker depleted the liquidity pools suggests that they modified the smart contracts that govern the pools.

This is just the latest attack on the DeFi industry, which continues to be a prime target for cybercriminals. DeFi systems have been audited but remain susceptible to security breaches, with hundreds of millions of dollars stolen so far in 2023.

Merlin has only been available for a short time. The fact that it was built using zkSync and even secured many collaborations caused quite a stir. Core Farming Pools, the platform’s major attraction, attracted millions in a matter of days.

The DEX was developed using zkSync, an Ethereum scaling solution based on zk-rollups at Layer 2. The MAGE token is now being sold to the general public. The hack’s impact on the pre-sale remains unknown. However, potential backers should proceed with caution for the time being.

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