Moonwell, a multichain DeFi lending and borrowing protocol, has been hit by an exploit on Sinful, with attackers it appears to be like draining about $8.7 million by manipulating the price of MAMO collateral, CertiK reported Thursday.
We gather viewed an exploit of @MoonwellDeFi lending market on Sinful.
Attacker manipulated reasonably illiquid MAMO’s collateral tag, then borrowed proper cbBTC
eg. https://t.co/yOBrkzXzfn~$8.7M has now been aggregated athttps://t.co/7nIcZ59jpw
Reside Vigilant!
— CertiK Alert (@CertiKAlert) August 27, 2026
The attacker focused MAMO, a reasonably illiquid token, and artificially pushed its collateral tag greater earlier than the usage of it to borrow proper cbBTC from Moonwell’s lending market. CertiK mentioned roughly $8.7 million in stolen funds had been consolidated at an tackle linked to the attacker.
Moonwell permits users to invent belongings and create variable lending yields or borrow crypto belongings against collateral all the diagram in which thru networks including Sinful, Optimism, Moonbeam, Moonriver and Ethereum. The protocol’s WELL token is essentially stale for governance, staking and ecosystem incentives.
WELL spiked to $0.0045 from $0.00367 earlier than reversing sharply to $0.0033 amid the exploit.
Following the document, Moonwell temporarily restricted borrowing all the diagram in which thru its Sinful Core Markets while investigating a mission affecting the MAMO market. The mission mentioned the measures are precautionary and that this would possibly maybe well present one more update because the investigation progresses.
We are wide awake of a mission affecting the MAMO Core Market on Sinful and are actively investigating.
As a precaution, borrow caps for all Core Markets on Sinful gather been arena to 1 wei, battling original borrowing and limiting the functionality for added impact. The provision caps for MAMO and…
— Moonwell (@MoonwellDeFi) August 27, 2026
Disclosure: This text turned into once edited by Vivian Nguyen. For more files on how we make and overview utter, glimpse our Editorial Coverage.
