More Markets Exploit: $9.3M Drained From WFLOW Token | News

More Markets, a DeFi lending protocol on Flow EVM, was exploited by manipulating Ankr bonded LSTs and its E-Mode borrowing calculations, draining 15.5 million WFLOW (~$9.3M) from the mFlowWFLOW reserve. On-chain traces show stolen funds were moved and bridged off-chain, the team is investigating with no recovery announced, and market reaction pushed WFLOW down ~9% and FLOW ~8.7% to $0.0262.

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More Markets, a lending protocol developed by More Labs on the Flow EVM network, has suffered an exploit that drained 15.5 million WFLOW from its lending reserves. Blockaid identified 15.5 million WFLOW leaving the reserve, with the tokens valued at around $9.3 million.

However, More Markets has not confirmed the amount lost, they say the investigation is ongoing.

According to Web3 security firm Blockaid, the attacker exploited the protocol’s handling of liquid staking tokens (LSTs) through its E-Mode system.

E-Mode allows users to borrow more against assets considered closely related in value. The attacker reportedly combined an Ankr bonded LST with E-Mode and exploited how More Markets calculated borrowing limits.

This allowed the attacker to take out loans against manipulated collateral and repeatedly withdraw WFLOW from the protocol’s mFlowWFLOW reserve.

Blockaid identified 15.5 million WFLOW leaving the lending reserve during the attack.

Based on WFLOW’s market price, Blockaid estimated the financial impact at around $9.3 million.

On-chain activity also showed that the attacker began moving the stolen assets shortly after the exploit. Some funds were transferred toward external wallets and bridged away from the Flow EVM ecosystem.

As of now, there is no confirmed recovery plan or recovered amount from More Markets.

“Our team is currently investigating a claim that MORE Markets was exploited. We will our findings shortly.”

Until the investigation is complete, the exact damage and whether any funds can be recovered remain unclear.

The security incident quickly affected Flow ecosystem tokens. Wrapped Flow (WFLOW) dropped around 9% within an hour, while FLOW fell 8.7% to $0.0262.

The decline came as traders reacted to the exploit rather than a broad crypto market sell-off.