More Markets Lending Reserve Drained for $9.3M: Blockaid | Crypto Security News
Crypto security news: More Markets Lending Reserve Drained for $9.3M: Blockaid. This update explains what happened, why it matters for wallets, exchanges, traders, and users, and what the market should watch next.
Crypto Security Update
Decentralized finance (DeFi) vault infrastructure protocol More Markets had a lending reserve drained of about $9.3 million in digital assets on Flow EVM, according to Web3 security platform Blockaid.The attacker drained about 15.5 million Wrapped Flow (WFLOW) tokens, valued by Blockaid at approximately $9.3 million, from the mFlowWFLOW lending reserve, according to blockchain data shared by Blockaid in a Monday X post.Blockaid said the attacker used Ankr Staked FLOW (ankrFLOW), a liquid staking token, alongside E-mode to overborrow from the reserve.E-mode, short for efficiency mode, is an Aave V3 feature that increases borrowing power for assets whose prices are expected to move together, such as a liquid staking token and its underlying asset.The exploit pushed total losses from cryptocurrency hacks to $139.7 million for August, making it the third-largest month by value stolen so far in 2026. However, it marks a significant decrease from $254 million stolen during July, according to DefiLlama data.On Sunday, Cronos halted its blockchain network after a reported $75 million exploit targeting DeFi lending protocol Tectonic.More Markets had not publicly confirmed the incident or disclosed whether users suffered losses at the time of publication. Cointelegraph contacted Blockaid for more details but did not receive a response by publication and was unable to reach More Markets for comment.Related: Humanity Protocol to prioritize operational security following $36M hackCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
Why This Security News Matters
First, this development may affect exchange safety, wallet security, user trust, and broader market sentiment. In addition, it may influence platform security practices, fund recovery efforts, and regulatory pressure. As a result, traders and crypto users should watch the next updates closely.
What To Watch Next
Watch for official statements, post-mortem reports, wallet warnings, exchange responses, and fund recovery updates. In particular, any new details about phishing, exploits, private key exposure, or security patches could directly affect the broader crypto market.
