Flamingo Finance exploit mints about 2.19 trillion FLM after staking-contract bug
AI Market Summary
Flamingo Finance on Neo N3 suffered a staking reward-calculation exploit, enabling an attacker to mint ~2.19T FLM (over 3,500x prior circulating supply) and rapidly dump into FLM liquidity pools, draining assets and crushing on-platform liquidity. The Neo Council froze the attacker's address, but the incident creates acute inflation, impaired pool functioning, and heightened counterparty risk for users and ecosystem DeFi activity.
Impact level
● High
Affected assets
NCSKHOOD2USD/USDT+16.95%
AI Insight · NCSKHOOD2USD/USDTAI Insight
▼ Bearish
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Flamingo Finance, a major DeFi platform on Neo N3, was exploited after a vulnerability in staking-contract reward calculations was used to mint about 2.19 trillion FLM tokens. The amount was more than 3,500 times the roughly 570 million FLM circulating before the incident, and the newly minted tokens were used to drain liquidity from trading pools. The team said the FUSD pool was not fully emptied, with about 11,000 bNEO left in the pool due to technical constraints. The incident has left FLM facing sharp inflation and depleted liquidity.
