Crypto hack on Morpho Labs thwarted by white hat hero

Following the implementation of the front-end update on its Morpho Labs on April 10, 2025, and a day after the implementation of updates, hackers breached the vulnerability due to the updates. Over the same incident, Peakshield, a blockchain analysis firm, reported that the address had lost $2.6 million in the breach.

Most importantly, it has been reported that a popular maximal extractable value white hat hacker has intercepted around $2.6 million in digital assets that have been stolen after the breach of the address on Morpho Labs.

In the X post dated April 11, 2025, Peakshield said, “ An address appears to have suffered a $2.6M exploit due to a #MorphoBlue frontend vulnerability and was frontrun by c0ffeebabe.eth. The funds were transferred to 0x1A5B…C742.”

Soon after the breach the Morpho Labs wrote in its X post that, “ The Morpho team was alerted to an issue in yesterday’s Morpho App frontend update.” The same post adds, “ We have reverted the changes and restored normal operation,” “All funds in the Morpho Protocol are safe and unaffected.”

It is worth noting, the developer of the ecosystem said the updates that were made were done with the intention to enhance the transaction flow.

The team said it has figured out the primary issue and has fixed the problem to avoid any problem in the near future with this specific update.

In very simple words a white hat hacker who works for good deeds such as recovering lost funds on behalf of firms in exchange for some rewards; these kinds of hackers also help the institutions to find loopholes in their technical ecosystems to help them avoid becoming victims.

Over the past few years, the usage of Automated bots has grown for illicit activities, especially in the cryptocurrency market, and this trend has become a headache for the crypto market.

Automated bots are also termed as go-to-tools for the malicious hackers, and these are designed with huge software scripts, which means these are programmed automated applications that are designed for different tasks and can execute thousands of tasks at a time which no human being can match.

Scamming techniques like phishing and social engineering are majorly done leveraging automated bots, website mimicking and tokens has become quite common in the past few years.

Until publishing the crypto market cap was $2.60 trillion with a loss of 12% in the past 24 hours, and in the past 24 hours the crypto fear and greed index fell to 21 from 25. 

Bitcoin is still exchanging at $81,203 with a loss of 7% in a week and fell more than 20% in a quarter.