BetterBank: LP Manipulation + Bonus Minting Exploit (Unregistered LP Pair Bypass)
BetterBank's auditor flagged the exact attack vector three months before launch; BetterBank downgraded it to "Low Priority" — six weeks later an attacker used worthless tokens instead of ETH to drain $5M.
Summary #
BetterBank suffered a Lending Protocol / Yield Protocol on 2025-08-25, resulting in a loss of approximately $5M.
What happened #
BetterBank's auditor flagged the exact attack vector three months before launch; BetterBank downgraded it to "Low Priority" — six weeks later an attacker used worthless tokens instead of ETH to drain $5M.
Linked factors #
- RD-F-076 — related : Protocol age (Cat 5 — < 6 months age signal) [via dashboard_risk_factors/Protocol age: 6 weeks at time of exploit]
- RD-F-090 — illustrative : Mixer withdrawal → protocol interaction [via realtime_signals/Pre-exploit on-chain signals: Attacker deployed 3 custom contracts before the attack; Tornado Cash funding of attack wallet]
- RD-F-111 — causal : Team doxx status — pseudonymous-no-track-record class [via dashboard_risk_factors/Team anonymity: Partially anonymous; co-founder background raises questions]