Ionic Protocol
Last changed 2026-10-27 · Fact-check review — Fact-check review (verdict: revise): the reviewer checked the page's claims against its sources; the trust score did not change. Version history →
Why this score
| Every page starts at | 65 |
| Concerns that are not fraud | -6.4 |
| Incidents it suffered (e.g. hacks) | -9.6 |
| Problems around it, caused by others | -1.6 |
| Long-running | +6 |
| Sum | 53 |
Score: 53/100 (kept between 0 and 100)
How scoring works →Page reliability: Fact-checked 2026-10-27 · 4 of 6 claims confirmed · 1 need better sources · 1 out of date
anchored·5kB1QN…qdWfSummary
Ionic Protocol (also known as Ionic Money) is a non-custodial lending and borrowing protocol on Mode Network, an OP Superchain Layer 2, and a rebrand of Midas Capital, which was exploited twice in 2023 for a combined loss of about $1.26 million. In February 2025 Ionic lost an estimated $6.9 million to $12.3 million, depending on the source, after attackers impersonating the Lombard Finance team got a counterfeit LBTC token listed as collateral; part of the funds were laundered through Tornado Cash and no recovery or user compensation has been confirmed.
Connected Entities
16 entities · 60 linked investigations- Ethereum→mentioned with→Coinbase(60%)
- Ethereum→mentioned with→Bitcoin(60%)
- Compound V2→mentioned with→Coinbase(65%)
- Compound V2→mentioned with→Uniswap(60%)
- Compound V2→mentioned with→Balancer(60%)
- Compound V2→mentioned with→Ethereum(80%)
- Compound V2→mentioned with→ZachXBT(70%)
- Midas Capital→mentioned with→Polygon(60%)
- Midas Capital→mentioned with→Ethereum(60%)
- Midas Capital→mentioned with→Binance(60%)
- + 58 more
Timeline(13 events)
November 2021
Midas Capital, the predecessor to Ionic, is initiated by an anonymous team as a multi-chain isolated lending market on Polygon and BNB Chain.
Ionic Protocol: Introduction — MediumJanuary 2023
Midas Capital's Jarvis Polygon pool is exploited via read-only reentrancy on WMATIC-stMATIC Curve LP collateral; approximately $660,000 lost (dated January 15 and January 16 by different sources).
Midas Capital Suffers $660,000 Flash Loan Attack — BeinCryptoJune 2023
Midas Capital BNB Chain pool exploited via a rounding error in its Compound V2-derived code; approximately $600,000 lost.
Midas Capital Pool Exploited for $600k — BeinCrypto2023
Midas Capital is sunsetted and the team rebrands it as Ionic Protocol on Mode Network.
Ionic Protocol: Introduction — MediumMarch 2024
Ionic announces Renzo Protocol's ezETH as its first LRT collateral on Mode Network, using RedStone oracle price feeds.
RedStone announces ezETH price feed support for Ionic on Mode — XApril 2024
Renzo Protocol's ezETH depegs about 18% on Uniswap after the REZ tokenomics announcement; over $60M in liquidations across DeFi. No confirmed material bad debt attributed to Ionic.
Renzo's ezETH depegs 18.3% following REZ tokenomics announcement — The BlockDecember 2024
Alleged attacker begins interacting with Ionic, impersonating Lombard Finance team members in business development discussions.
Explained: The Ionic Money Hack (February 2025) — HalbornJanuary 2025
Attacker deploys counterfeit LBTC token contract (0x964dd444e3192f636322229080a576077b06fba3) on Mode Network.
Feb 2025 — Ionic Money Fake LBTC Collateral Social Engineering — Quadriga InitiativeFebruary 2025
Ionic exploit executed: 250 counterfeit LBTC tokens deposited as collateral to borrow real assets including MBTC, uniBTC, wrsETH, WETH and STONE; loss estimates range from about $6.9M to $12.3M.
Ionic Money — Rekt NewsFebruary 2025
Attacker bridges about 1,204 ETH (roughly $3.2M) from Mode Network to Ethereum and launders it through Tornado Cash.
Explained: The Ionic Money Hack (February 2025) — HalbornFebruary 2025
ZachXBT publicly flags the exploit, says he had previously confronted the team about Midas's two 2023 hacks, and states 'Ionic is just Midas wearing a carnival mask.'
ZachXBT on X — confronted Ionic about prior Midas hacksFebruary 2025
Ionic team acknowledges the exploit as a social engineering incident rather than a smart contract vulnerability and advises users to suspend platform interaction.
Explained: The Ionic Money Hack (February 2025) — HalbornFebruary 2025
Ionic publishes its official post-mortem, stating the incident was not a code-based breach and pledging to work with law enforcement.
Ionic official post-mortem (PDF)Decision Log
- slot 462188751 · hash 5c6shS9XVEHWmLNiyucuvwzb9WsQF3WNfxckXkygb9U5
- slot 462188601 · hash 8mjeu1dRhwiFQSMdBFZzM4qECAU7H8s2wH2WAEtRrVi5
- slot 455368600 · hash DXYbXX7xKGCDnnKHBzuPUqAMrdqxWr9Bae2yxHf8fnmm
- slot 422622670 · hash rJBc5anxykJ8rtAKC5jVr2AyMQw66Z8q97jgQSohGSk
This investigation is cryptographically anchored to the Solana blockchain (4 decisions). 22 of 27 cited source URLs have an Internet Archive snapshot.
model: claude-code-merge-writer
generated: 5/4/2026, 2:54:25 AM
last updated: 10/27/2026, 7:26:47 PM
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