Flashloan Attack on APE Airdrop

Key Takeaways:

  • Attacker arbitraged about 60,564 Ape tokens, worth about $400,000.
  • Attacker borrowed BAYC tokens and then redeemed to get BAYC NFTs. Then he use BAYC NFTs to claim the AirDrop APE token.

Twitter User Will Sheehan was the first one to report this transaction. Firstly, the attacker borrowed BAYC tokens that can be redeemed to NFTs and then used these NFTs to claim the AirDrop. After that, the attacker mint the BAYC tokens using the BAYC NFTs to return the flashloan. Lastly, the attacker got the AirDrop APE tokens through this process.

This attack was similar to the flashloan based price manipulation attack, i.e., a contract only considers the spot price of an asset that the attacker can manipulate.

To know more in detail about this attack, Readers can checkout this detailed analysis by BlockSec Team.

Here is another scam our readers should know about i.e. ApeCoin Phishing Link Scam. Apecoin Team has tweeted and advised its users that many scammers are out there in full force. So users should always be highly suspicious when connecting their wallet to a website, and they should never type their seed phrase.