According to Foresight News , DeFi lending protocol Moonwell is at risk of losing over $1 million as an unidentified participant attempts to use a proposal to allocate power. Multiple on-chain observers report that an attacker spent approximately $1,800 to purchase around 40 million MFAM tokens, enough to drive a malicious governance proposal that would transfer administrative control of the protocol's core contract.
The entire process—purchasing tokens, creating the proposal, and voting to pass it—took approximately 11 minutes. The proposal, currently active in Moonwell's Moonriver deployment environment, would transfer control of seven lending markets, auditing firms, and oracles to an attacker-controlled contract. Once executed, this contract could potentially drain the entire protocol's funds. Current estimates suggest that approximately $1.08 million in user funds could be at risk if the proposal is implemented.
Moonwell is a lending protocol based on Moonbeam and Moonriver, and is part of the Polkadot ecosystem. It previously suffered approximately $1.78 million in bad debts in February of this year due to an oracle misconfiguration.
