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Attacker tries to defraud $38.7 million worth of Mirror Protocol tokens on Terra

  • The synthetic asset protocol Mirror is suspected to be under a governance attack trying to defraud 15 million MIR tokens. 
  • The Mirror protocol community's pool was the attacker's target through Proposal 185. 
  • The proposal was disguised as a request for cooperation with the Solana network. 

Terra ecosystem's massive growth has made it mainstream, attracting hackers to protocols on the network. In a planned governance attack on the Mirror Protocol, attackers tried to defraud $38.7 million worth of tokens. 

Mirror Protocol is the target of planned governance attack

Mirror protocol's MIR is an Ethereum token network that governs the synthetic asset protocol. The protocol enables the creation of fungible assets that emulate real-world assets and aims to enable equities trading 24 hours a day, seven days a week. 

Mirror protocol aims to mint the "synthetic" version of real-world things and power trading in these assets. 

Chinese journalist Colin Wu said the synthetic asset protocol was recently subjected to a governance attack. Hackers tried to defraud the network and steal $38.7 million worth of MIR tokens (the equivalent of 15 million MIR) at $2.58 each. 

The attackers submitted Proposal 185, disguising the attack as a request for cooperation with the Solana network. 

Wu further noted that the attackers deliberately chose Christmas eve to execute the hack to launch a dozen false governance proposals. 

Mirror protocol's community fund pool was the target of the attack requesting in-depth cooperation with Solana. The attacker's attempt to defraud the 15 million MIR tokens pool was carefully planned. 

The synthetic asset protocol's price has posted 1.7% gains despite the news of the attack. Analysts have a bullish outlook on Mirror price and continue accumulating the synthetic asset token. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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