NFT Platform OMNI Hit By Re-Entrancy Exploit, Lost $1.4M in ETH
OMNI – an NFT finance platform that lends out cryptocurrency in exchange for staked NFTs – fell victim to a re-entrancy exploit that led to the loss of nearly 1,300 ETH, worth $1.4 million at the time. The project in question lost the funds following a bad faith staking of NFTs from the Doodle collection.
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In order to carry out the attack, the perpetrator first deposited Doodles as collateral for a loan of wrapped ETH (wETH). Once the loan was secured, the exploiter was able to withdraw all Doodles except for one, causing a callback function that voided the debt acquired by purchasing wETH.Once these two steps were completed, the Doodle remaining on the platform was no longer enough to cover the debt incurred. The position was then liquidated by the system, returning the last of the Doodles to the attacker as well.
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