The Factom protocol suffered a 51% Attack, and hackers manipulated the stablecoin price to profit $6.7 million.

Recently, a 51% Attack incident targeting a DeFi stablecoin network platform based on the Factom protocol has attracted widespread attention in the industry. According to reports, four Miners united their efforts to seize 70% of the Computing Power of the entire network, successfully tampering with the platform data.

These attackers initially had a wallet balance of only $11, but they manipulated the price of a yen-related stablecoin, rapidly inflating the balance to $6.7 million. Subsequently, they converted these funds into a stablecoin pegged to the dollar. However, when they attempted to further exchange and disperse the funds in the spot trading system, their actions encountered failure.

Regarding this incident, an executive from Factom stated that the attacker's actions only affected the balance of their own wallet. Due to the protocol limiting rapid asset transfers, the attacker was unable to move a large amount of stablecoin outside the platform. Although a significant amount of assets was generated, they could not be liquidated.

The platform stated that the attack lasted for about 20 minutes, but it did not affect the security of other users' funds.

Interestingly, after the asset transfer failed, the attackers proactively contacted the platform's official team. They claimed that this operation was a "malicious penetration test" aimed at discovering potential vulnerabilities in the system and notifying the core development team. As a goodwill gesture, the attackers also destroyed all problematic stablecoins.

It is worth mentioning that this platform is a decentralized non-custodial stablecoin network, pegged to various world currencies and assets, including gold, euros, and US dollars. Its design philosophy is fully auditable and open source, aimed at simplifying the value conversion and transfer process between different assets.

This event has once again sparked discussions in the industry about the security of DeFi projects. Although decentralized finance has brought many innovative possibilities, ensuring system security while maintaining openness remains a significant challenge faced by the entire industry.