Fraudsters are attempting to drain the Mirror Protocol community pool via the on-chain governance system, according to CertiK researchers. The attackers published a series of proposals, and if adopted, MIR tokens worth more than $111 million would be sent to their addresses.
#CommunityAlert
The @terra_money ‘s @mirror_protocol is under governance attack. The attacker is flooding a series of fake polls to confuse the community. The scam proposals are 185,198,204,206,207,208. Please vote NO to these proposals.
Mirror govern:
https://t.co/HsiF3fSret pic.twitter.com/LCxKROcO5F— CertiK Security Leaderboard (@certikorg) December 25, 2021
Mirror Protocol is intended to issue synthetic assets on the Terra blockchain. These are tokenised versions of traditional market instruments, such as stocks and bonds.
The MIR governance token enables users to submit proposals for protocol improvements and vote on their adoption.
The latest fraudulent proposal — “Freeze the community pool in case of a breach” — is registered as poll number 211. If the attacker manages to obtain a majority [12 — topple] of votes, allegedly 25 million MIR will be sent to their address, worth about $65.75 million at the rate at the time of writing.
Voting on this proposal ends on 1 January 2022.
Community members have identified six more similar polls on the project’s governance page. Potentially, attackers could obtain more than 45 million MIR.
«Judging by the coordinated actions and the large sums at the disposal of these individuals, it seems that these are not random attackers, but a group of wealthy people or organisations with substantial assets», — wrote user yd19.
The Mirror Protocol team has yet to comment on the situation.
Recall that in 2021, fraudsters stole more than $7.7 billion in cryptocurrencies from users, according to Chainalysis. More than a third of this amount was due to rug pull schemes.
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