Funds Worth IDR 16.9 Billion On Crypto Platform Levana Stolen By Hackers

Hackers broke into the Levana crypto trading platform. (Photo; Doc. Cryptomist)

JAKARTA - Levana, a protocol for futures trading with leverage operated on the Osmos blockchain, suffered heavy losses as a result of a hacker attack that lasted for 13 days.

According to an official report released by the Levana team, the hacker managed to drain more than $1.1 million (IDR 16.9 billion) from the protocol liquidity pool. The theft took place between December 13 and December 26, 2023.

According to The Block, this attack is likely caused by a number of factors, including the Osmos network density which reduces protocol performance, a bug in the Osmos cost market code which causes insufficient transaction fees, and "price stability" in Levana integration with Pyth oracles that provide asset price data.

Well, hackers are leveraging these loopholes to manipulate prices and take advantage of unbalanced trade positions. Levana's team clarified that there is no problem with Pyth's oracle, which is one of the leading financial data providers in the crypto world.

"Oraclel Pyth behaves as expected and there is no vulnerability there," the Levana team wrote in its report.

Currently, Levana is working to fix existing problems and implement code updates on the Osmos, Sei, and Injective blockchain, which are three networks where the Levana protocol operates. This update is expected to improve the security, stability, and efficiency of the Levana protocol.

Tim Levana juga menegaskan bahwa posisi perdagangan dan keuntungan pengguna tidak terffeng oleh serangan ini. Meski begitu, mereka menyarankan pengguna untuk tidak membuka atau mengubah posisi baru sampai pembaruan selesai dilakukan minggu depan.

As a form of compensation, Levana plans to compensate liquidity provider losses through Levana's airdrop token and protocol cost distribution collected during the attack period. The Levana team also thanked the Levana community for their support and patience.

For your information alone, Levana is one of the leading perpetual swap protocols in the crypto world, which allows users to trade various assets at high leverage and low cost. Levana is also part of the Osmosis ecosystem, which is the largest decentralized exchange in Cosmos, a blockchain network.