New Gold Protocol loses USD $ 2 million after hacking that manipulated price oracle

The attacker took advantage of the contract vulnerability and depending on the price calculation, which could extract the funds and then send them to Tornado cash.

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• Flash A attack by Drena near USD $ 2,000,000 from the liquidity pool of NGP
• Token price collapses 88% after hacking, according to Peckshield.
• Stolen funds end in Tornado cash And they revive debate about security DEFI.

The decentralized protocol New Gold Protocol (NGP)which operates on the ecosystem of Bnb chain, He suffered a cyber attack on Wednesday that drained approximately USD $ 2,000,000 from his liquidity pool. The incident highlighted the vulnerability of some intelligent contracts DEFI in the face of price oracles manipulations and the use of flash loans.

According to the security firm Web3 Blockoid, The attacker took advantage of a weakness in the function Getprice () of the smart contract of NGP This calculated the price of the token based directly on the current reserves of the torque Uniswap v2, A method that leaves the protocol to manipulations in large volume exchange operations, review The Block.

Hack to New Gold Protocol (NGP)
USD 2M Pool drained after flash loan
They manipulated getprice () with unisswap v2 reserves; Token -88%
Funds to Tornado Cash. They report Blockoid and Peckshield pic.twitter.com/pqalhmxaxr

– Diario ฿ Itcoin (@diariobitcoin) SEPTEMBER 18, 2025

How was the attack executed?

According to reports, Blockoid He explained that the attacker launched a large flash loan, followed by a massive exchange that altered the main pool of NGP This movement artificially increased the reserve of USDT and reduced tokens NGP, making the function Getprice () will throw a falsely low value. With this, the hacker eluded the transaction limits of the contract and acquired a significant amount of tokens NGP at an altered price.

The firm stressed that “A spot price from a single pool of Dex is insecure because an attacker can dramatically manipulate reserves within an instant transaction.” This case shows that contracts that depend on a single price oracle remain a weak weak point in DEFI.

Stolen funds and immediate consequences

Another on-chain security platform, Peckshield, reported that stolen funds were subsequently deposited in Tornado Cash, A cryptocurrency mixer that makes it difficult to track the final destination of the assets. After the attack, the value of the token NGP 88%collapsed, generating panic among investors and reviving the debate on the security of decentralized protocols.

This attack adds to a series of recent incidents that affect platforms DEFI. The previous week, Nemo protocol —A project of Yield Farming based on Sui— It was exploited by USD $ 2,600,000 due to faults introduced without prior audit in its intelligent contract.

Attacks DEFI increasing

The sector DEFI It continues to face an increase in the scale and frequency of cyber attacks. According to data from Chainysis, In the first half of 2025 more than USD $ 2,000,000,000 services related to cryptocurrencies related. This figure already exceeds the total stolen in equivalent periods of previous years, which highlights a sustained increase in the risk for investors and platforms.

For analysts, these incidents are a sign that audit and security practices must be reinforced before the launch of new chain products. In addition, they recommend diversifying price sources and using anti-manipulation mechanisms to avoid similar vulnerabilities.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Unspash, edited with Canva

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