The stablecoin network based on the Factom protocol suffered a 51% Attack, with the attackers manipulating prices to profit $6.7 million.

Recently, a decentralized finance stablecoin network platform based on the Factom protocol suffered a 51% Attack. It is understood that four Miners joined forces to control about 70% of the Computing Power of the entire network and used this advantage to tamper with the platform's data.

These attackers initially had a wallet balance of only $11, but by manipulating the price of a yen-pegged stablecoin, they rapidly inflated the balance to $6.7 million. Subsequently, they converted these funds into dollar-pegged stablecoins. However, when they attempted to exchange more tokens in the spot trading system and disperse the transfers to multiple wallets, this attempt ultimately ended in failure.

A senior official from the project responded to the incident, stating that the attacker's actions only affected the balance in their own wallet. Due to protocol design limiting rapid asset transfers, the attacker was unable to transfer a large amount of stablecoin outside the platform. Although a large amount of assets was generated, they were unable to convert it into cash.

It is reported that the attack lasted for about 20 minutes, but the platform emphasized that the funds of other users were not affected.

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

This attacked platform is a decentralized, non-custodial stablecoin network designed to be pegged to various world currencies and assets (such as gold, euro, and US dollar). The platform emphasizes that its system is fully auditable and open-source, aimed at simplifying the process of value conversion and transfer between different assets.

This event once again highlights the security challenges faced by blockchain projects and reminds industry professionals of the need to continuously improve security mechanisms to address potential attack threats.