New Gold Protocol: Hacked on Launch Day Amid Enterprising Plans
Just hours after its debut on September 18, 2025, the New Gold Protocol (NGP) was hit by a devastating hack. The attacker managed to steal $1.9 million worth of cryptocurrency through a flash loan attack.
The New Gold Protocol aimed to revolutionize the DeFi sector with its AI-driven approach and focus on sustainability. However, the project’s launch was marred by significant security vulnerabilities.The hacker exploited two major flaws to bypass the system’s buying and cooldown limits.
Here’s how the attack unfolded:
- Accumulated assets via flash loans
- Manipulated the NGP token price by swapping BUSD for NGP
- bypassed NGP’s limits using a specific address
- Drained BUSD tokens, leaving NGP nearly empty
later, the attacker withdrew the stolen funds and moved them to Tornado Cash via Ethereum.This led to a massive drop in the NGP token value, plummeting by 88%.
The incident highlights the critical importance of stringent security measures. While NGP boasted plans for an inclusive, transparent staking platform, it failed to secure its infrastructure充分。The team has yet to comment on the breach.
Flash loan attacks have been prevalent in the DeFi space. Major incidents include the euler Finance hack ($197 million) and the Cetus protocol breach ($223 million). These cases underscore the ongoing challenges in ensuring DeFi security.
