Mirror protocol on Terra becomes victim of governance attack
The synthetic asset protocol on Terra blockchain is under “governance attack.” The “hacker” is looking forward to stealing $30 million worth of MIR tokens via the initiated Proposal 185, which was disguised as a cooperation request with the Solana network.
According to the description of the proposal, it was created to allow cooperation with a Solana ecosystem listed on a decentralized Orderbook exchange. The recipient’s address should have received 15 million MIR tokens.
According to the screenshot shared by WuBlockchain, more than 1.78 MIR have been sent in favor of the proposal, while 2.3 million MIR have been sent on the “No” address that would decline the proposal.
Most likely, the governance attack failed and the funds will not be sent to the scammer’s wallet. Funds spent to vote will also be returned to users.
The “governance attack” principle
Blockchain and projects with an implemented governance mechanism quite often become victims of governance attacks that are aimed at draining projects’ funding wallets or even stealing funds from users directly, depending on the mechanism’s functionality.
With the help of numerous wallets and large collateral, hackers or crooks are able to generate votes with fake addresses which will receive tokens or funding coins for the completion of the proposal. But instead of spending money on the realization of the proposition, the crooks sell assets on decentralized exchanges and disappear.
The scamming scheme is being realized by sending money to the “Yes” option address. Since most protocols send users’ funds back to their wallets, scammers are able to drain funding wallets without spending even the smallest part of their initial collateral.
