A white hat hacker stepped in to stop $2.6 million in crypto from being stolen after a security issue at Morpho Labs, a decentralized lending company.
The funds were targeted after Morpho Labs pushed a front-end update to its Morpho Blue app, its decentralized finance (DeFi) platform, on April 10. That update introduced a flaw, and a hacker had found a way to take control of a wallet and drain it.
According to a report shared by PeckShield, a blockchain security company, the attacker managed to steal $2.6 million.
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However, someone using the name “c0ffeebabe.eth“, known for ethical MEV (maximal extractable value) actions, front-ran the hacker’s transaction. This means they intercepted the stolen funds before they reached the attacker.
After the incident, Morpho Labs rolled back the update. In an April 11 post on X, the team confirmed it had been informed about the issue and took steps to fix it. They said all user funds within the main Morpho Protocol were safe and unaffected.
The team also noted that the front-end is now secure, and users do not need to take further action.
The update that caused the issue was meant to improve how transactions are handled. However, the change ended up generating some transactions incorrectly, which opened the door for the exploit. Morpho Labs said that it has found the problem and fixed it.
Meanwhile, cybersecurity firm Kaspersky recently reported that hackers are distributing fake Microsoft Office add-ins on SourceForge. What did they do? Read the full story.
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