Moonwell has recovered part of the funds tied to its earlier exploit and has paused protocol interactions, according to an update cited by Techub News. The project also cut borrowing caps for all core markets on Base to 1 wei as it moves to contain the fallout. The attack involved manipulation of the MAMO collateral price. Earlier reports said the attacker borrowed about 50.6 cbBTC, worth more than $4 million, from the mCBTC market and then converted the proceeds into DAI. Blockchain security firm PeckShield estimated total losses at about $8.7 million. Moonwell has also restricted supply caps for MAMO and WELL. The latest update points to an ongoing response effort after the exploit, with partial fund recovery now confirmed. The report cited by Techub references crypto.news as the source for the latest developments.

Decentralized lending protocol Moonwell is investigating a security incident affecting the MAMO Core Market on Base after blockchain security firms flagged what they described as a multi-million-dollar exploit. CertiK and PeckShield estimated losses at roughly $8.7 million, while Moonwell said it had imposed emergency limits across Base Core Markets as a precaution. According to Moonwell’s statement on X, all borrowing caps for Core Markets on Base have been set to 1 wei. The protocol also reduced the supply caps for MAMO and WELL to 1 wei. PeckShield said the attacker consolidated the stolen funds into an address holding the DAI stablecoin. CertiK said the exploit involved manipulation of the collateral price for the low-liquidity MAMO token, after which the attacker borrowed real cbBTC from the mCBTC market. Blockaid identified the same attack pattern. Following the incident, WELL fell about 13% over 24 hours and MAMO dropped about 9%. The report also placed the case within a broader wave of DeFi exploits since April, a period in which more than $600 million has been stolen across protocols, with the largest single incident cited as Kelp DAO’s $292 million exploit.

Moonwell, a DeFi lending protocol on Coinbase’s Base network, was hit by an exploit that drained nearly $9 million in user deposits, according to Protos and on-chain security alerts from Blockaid. The attacker manipulated the price of MAMO, a relatively illiquid token accepted as collateral on Moonwell, then borrowed assets from the protocol’s mCBTC market. Blockaid said the attack was first flagged about an hour after it began, initially identifying 50.6 cbBTC, worth more than $4 million, as already drained. Protos reported that the losses later climbed as the attacker borrowed cbBTC, USDC, WETH, and wstETH, then swapped the proceeds into DAI. Of that amount, 8.7 million DAI was reported to be sitting in an Ethereum address funded via Tornado Cash. Moonwell said it responded by cutting all borrow caps, along with MAMO and WELL supply caps, to one wei to block new borrowing and contain any added damage. The incident is the protocol’s fourth pricing-related problem in less than a year, following earlier episodes involving an October 10 market-crash discrepancy, fallout tied to the Balancer hack, and a February contract error involving cbETH valuation.

BlockBeats reported on Aug. 27 that blockchain security firm Blockaid detected suspicious activity involving Moonwell on the Base network. According to Blockaid’s exploit detection system, the attacker manipulated the price of MAMO collateral and then borrowed cbBTC from the mCBTC market. The impact observed so far is the transfer of 50.6 cbBTC, valued at more than $4 million. The report did not provide additional details beyond the amount moved and the method identified by the monitoring system. The incident was described as activity observed on-chain, and the figures cited were limited to what Blockaid had seen at the time of the alert.

Blockaid said its exploit detection system has identified suspicious activity involving Moonwell on Base. According to the monitoring alert, the attacker manipulated the price of MAMO collateral and then borrowed cbBTC from the mCBTC market. The impact observed so far is the transfer of 50.6 cbBTC, which Blockaid said is worth more than $4 million. The alert did not disclose additional details beyond the monitored activity and the amount moved. ChainCatcher reported the notice as a market update.

Coinbase has enabled USDC sends and receives on Base for New York users, plans to list WCT on Optimism, and added USELESS to its roadmap. Meanwhile, trading for ERN and FX will be suspended due to project-related technical and operational issues.

Coinbase enabled Base USDC transfers for New York users, plans to add WCT on Optimism, and placed USELESS on its roadmap. At the same time, the exchange will suspend trading of ERN and FX due to project-related technical issues.

Coinbase has enabled Base-based USDC transfers for New York users, announced support for WCT on Optimism, and added USELESS to its roadmap. At the same time, it will suspend trading for ERN and FX due to project-related risks.