Dolomite exchange exploited for $1.8 million

The Dolomite DEX suffered a $1.8 million theft as an exploiter was able to take advantage of a vulnerability in a smart contract that had been deployed in 2019. Although most contemporary users of the exchange use a version deployed on the Arbitrum layer-2 network, the old contracts were still usable on Ethereum.

An attacker apparently discovered a reentrancy bug allowing them to drain user funds from those who had approved the old contract. Altogether, around $1.8 million was taken before the team disabled the contract. The attacker quickly tumbled the stolen funds through Tornado Cash.