According to the report, a hacker appeared earlier today, sending a small amount of assets to the ELP-1 pool on Arbitrum and withdrawing $580,000 shortly after. The hacker also left a message stating that he was not a blackhat.
The hacker left a line of messages accusing the EDE team of fraud, indicating that the project could take advantage of a price manipulation “backdoor” to liquidate users’ positions whenever they want.
New message says:
“ede admins created a bot to force liqudate any position of their choice when ever they like. ask the admins about it, see if they lie to you.”https://t.co/chZG714BZ7https://t.co/89EdZ39ejK
— Res (@resdegen) May 29, 2023
“ede admins created a bot to force liqudate any position of their choice when ever they like ask the admins about it, see if they lie to you.”
Hacker promises to return the above assets if the EDE team admits it, keeping only 10% as a white hat fee. And then 334,000 USDC was returned.
After receiving the warning, the El Dorado Exchange team admitted to manipulating prices but with the active purpose of putting hackers on the project’s blacklist, protect user assets, and not have the intention of cheating. However, EDE officials have yet to issue any response on official social media.
Hacker El Dorado Exchange ($EDE) On Arbitrum Unmasking Project Price Fraud 4
The EDE token is still bottomless in a drop of over 40% and is currently trading at $1.3 before settling at $2.2.
24h EDE price chart. Source: CoinMarketCap
El Dorado Exchange (EDE) is a decentralized spot & perpetual exchange that focuses on creating a federated chain for decentralized social trading. Traders can trade up to 50x on top assets like BTC, ETH & BNB, with no slippage, zero spreads and low fees. Users can mint ESBT, Soul Bound NFT, earning them rewards for increased interaction with the EDE platform. Liquidity providers provide liquidity using an indexed token, ELP, hedging with stablecoins, earning them transaction fees as well as additional token rewards.
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