ribbonfinance

【DeFi Hacking Review】💸 An oracle upgrade turned 8 decimal places into a $2.7 million withdrawal machine!!

📌 Event Summary:

- Victim: #aevo (the old version of DeFi options vault of #RibbonFinance ).
- Time: December 12, 2025.
- Loss Amount: Approximately $2.7 million.
- Core Reason: Caused by an oracle upgrade maintenance on December 6 by the officials.

⚡️ I have tried to explain this attack process in the simplest terms; if you don't have time, you can just look at the pictures! 👇🏼

1️⃣ Vulnerability Introduction:

This official upgrade not only mistakenly exposed key management permissions (transferOwnership and setImplementation were left unprotected) but also caused a mismatch in decimal precision between the old and new systems (18 vs 8).

2️⃣ Attack Preparation:

The hacker exploited the above precision vulnerability to create a special options product. This product had extremely low costs but appeared to be worth a fortune under the system's erroneous calculations.

3️⃣ Seizing Control:

The attacker used a "scapegoat" wallet (which met the tx.origin permission check vulnerability) to initiate transactions, successfully taking control of the oracle proxy admin.

4️⃣ Cycle Attack: Repeat this process

- Price Manipulation: The hacker obtained admin privileges and told the system: "Now the price of this asset is infinity".

- Withdrawal: The hacker took their low-cost "fake money" (malicious options) to cash out. The system paid the hacker real WETH and USDC at the erroneous high price.

- Cover-Up: After withdrawing, immediately change the price back, pretending nothing happened.

5️⃣ Money Laundering and Escape:

Dispersed the stolen money, washed it through Tornado Cash, and disappeared on-chain.

🌟 Summary: Therefore, every upgrade of #智能合约 must be extremely careful! Not a single mistake can be made! ❌

Information data source: rekt.news 🙏🏻

🚨 DeFi Shockwave: Ribbon Finance Hit by $2.7M Hack — What It Means for Crypto Users
Breaking reports reveal that Ribbon Finance, a well-known DeFi protocol, has suffered a security breach resulting in losses of approximately $2.7 million. The incident has sent ripples across the DeFi community and once again puts smart contract security under the spotlight.

What Happened?
According to early information, the attacker exploited a vulnerability within Ribbon Finance’s system, allowing unauthorized fund withdrawals. The team quickly detected the issue and paused affected operations to prevent further damage.

Immediate Response
Ribbon Finance acknowledged the incident publicly
Impacted contracts were secured
An internal investigation is underway
The team is working to trace the stolen funds and assess user impact

Why This Matters
Ribbon Finance has been a key player in structured DeFi products. A hack of this size:
Shakes user confidence

Raises concerns around smart contract audits
Reminds investors that DeFi still carries risk, even in established protocols
Bigger Picture for DeFi

This event is another reminder that:
Security remains the biggest challenge in DeFi
Risk management is crucial for users
Protocol transparency and fast response matter more than ever

What Users Should Do Now:

Stay alert, follow official updates, and always manage exposure wisely. DeFi offers innovation — but security awareness is non-negotiable.
👀 The market is watching closely. How Ribbon Finance handles the aftermath could define its future.
$RAY $SOL $ETH
#RibbonFinance

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