April 29 (Cointime) - The 0VIX Protocol team announced that they has reached out to the attacker with an ultimatum to return the funds or face legal consequences.

They have also posted an on-chain message to the attacker:

"If you return the stolen funds by 11am UTC 29 April to 0x8e1304ea39c47e791182ba39fdf362a8767d7e97, we will let you keep $125k as a bug bounty."

0VIX Protocol, along with several security firms including Chainalysis and PeckShield, have been investigating an unlawful exploit that occurred on the 0VIX protocol. The exploit involved a significant deposit and leveraged position created on the protocol resulting in abnormal utilization, which has been identified as a malicious exploit. The exploit was a result of price manipulation of vGHST, which is listed as a non-collateralizable asset on 0VIX. As an emergency procedure, oToken transfers, minting, and liquidations were paused on 0VIX Polygon POS and zkEVM markets. 

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On behalf of the community, the Association has now reached out to the attacker with an ultimatum to return funds or face the legal consequences of their actions. 

On-chain message to the attacker (please share): https://etherscan.io/tx/0x96e7ebc68bcc901c4281fc8c163ef1dcc310a96a915965e59a8f57b57bba022a…

Here is a status update on today’s events.

At approximately 11 AM UTC the 0VIX team became aware that there was a significant deposit and leveraged position created on the Protocol that resulted in abnormal utilization. This has now been identified as a malicious exploit. 

The transaction can be seen here: https://polygonscan.com/tx/0x10f2c28f5d6cd8d7b56210b4d5e0cece27e45a30808cd3d3443c05d4275bb008… The exploit was a result of price manipulation of vGHST which is listed as a non-collateralizable asset on 0VIX.

At approximately 2 PM UTC, as an emergency procedure oToken transfers, minting, and liquidations were paused on 0VIX Polygon POS and zkEVM markets.

0VIX is currently working non-stop on a solution with the broader ecosystem. More information about the situation and its implications will be posted shortly.