Following a market manipulation assault, the Celo-based borrowing and lending protocol Moola Market seized tokens worth over $10 million and later recovered on Wednesday morning.

The assault involved manipulation of the value of Moola's native MOO tokens to make loans against their holdings and essentially drain the protocol. It is the second time that Moola Market has witnessed such kind of incident in recent weeks.
<h2>Manipulation of MOO Token Value</h2>
According to their <a href="https://twitter.com/Moola_Market/status/1582588109161521153">report</a> in an attack that began on Tuesday evening in Asia, an unidentified <a href="https://www.cryptoknowmics.com/news/transit-finance-hacker-returns-2-74m-sends-686k-to-tornado-cash">hacker</a> started to control MOO's price on Ubeswap, allowing him to manipulate the MOO TWAP pricing oracle utilized by the Moola protocol.  Oracles are independent services that bring data into a blockchain from sources outside of it.

https://twitter.com/Moola_Market/status/1582588109161521153

The attacker essentially drained the protocol of its money by borrowing a large sum of cUSD and cEUR, two Celo-based <a href="https://www.cryptoknowmics.com/news/payments-watchdog-probes-role-of-stablecoins-in-cutting-foreign-costs">stablecoins</a> tied to the U.S. dollar and euro, correspondingly, and CELO from the protocol employing MOO as collateral. At that time, trading on the site came to an end.
<h2>Hacker Claims Responsibility For Involvement</h2>
Developers said that after learning about the manipulation, they immediately alerted law enforcement. A short while afterward, the attacker confirmed their involvement in contact with the team. The private key to the stolen money was in the possession of this person. After that, according to Moola, it was possible to talk to the assailant. Within 12 hours of the crime, Moola successfully retrieved over 93% of the money.

Meanwhile, the community has launched a governance plan to stop further attacks of this nature. The protocol aims to remove MOO as a valid collateral asset by lowering the dissolution levels that control its usage as collateral on the platform.

Moola Market Loses Over $10M in Market Manipulation Attack

A hacker involved in the manipulation of the value of Moola's native MOO tokens to make loans against their holdings and essentially drain the protocol.

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Moola Market Loses Over $10M in Market Manipulation Attack

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