$2.6M Vulnerability Flagged by White Hat in Morpho App

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$2.6M Vulnerability Flagged by White Hat in Morpho App Update

Written by Aaron S.,

Editor-In-Chief

Last Updated: June 25, 2025

Key Takeaways

White hat hacker c0ffeebabe.eth secured $2.6M in crypto after discovering a vulnerability in the Morpho App;
The vulnerability was caused by an update to the app's front-end on April 10;
Morpho Labs rolled back the change, fixed the issue, and confirmed user funds are safe.

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$2.6M Vulnerability Flagged by White Hat in Morpho App Update

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A white hat hacker stepped in to protect $2.6 million in crypto after a front-end vulnerability was discovered in the Morpho App, a decentralized lending platform developed by Morpho Labs.

The issue surfaced after Morpho Labs launched a front-end update to the app on April 10.

A known ethical maximal extractable value (MEV) actor, known as c0ffeebabe.eth, identified the flaw introduced by the update and accessed the affected funds.

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After the incident, Morpho Labs rolled back the update. In an April 11 post on X, the team confirmed it had been informed about the issue and took steps to fix it. They said all user funds within the main Morpho Protocol were safe and unaffected.

The update that caused the issue was meant to improve how transactions are handled. However, the change ended up generating some transactions incorrectly, which opened the door for the vulnerability. Morpho Labs said that it has found the problem and fixed it.

A report shared by PeckShield initially stated that $2.6 million had been “stolen” and claimed that c0ffeebabe.eth had front-run a malicious transaction - essentially intercepting the funds before they reached an attacker.

However, Morpho Labs later clarified that no malicious transaction was involved. The white hat discovered the flaw, used it to safeguard the assets, and later returned the full amount, acting within the bounds of Morpho’s bug bounty process.

Meanwhile, cybersecurity firm Kaspersky recently reported that hackers are distributing fake Microsoft Office add-ins on SourceForge. What did they do? Read the full story.