Sonne Finance: This attack is a donation attack, the attackers are being investigated, and the market has been suspended

Sonne Finance has released an attack analysis report, which is a donation attack. Sonne has avoided this problem in the past by adding a market with a collateral factor of 0%, adding collateral and destroying it before adding c-factors as proposed. Sonne recently passed a proposal to add a VELO market to Sonne, which scheduled this transaction on a multi-signature wallet and also scheduled the execution of c-factors within 2 days due to a 2-day time lock. When the 2-day time lock to create the market ended, the attacker executed 4 of the transactions, after which the addition of c-factors to the market transaction was executed. The attacker was able to exploit the protocol to obtain approximately $20 million in funds through a known donation attack. Seal contributors quickly noticed the issue and kept the remaining approximately $6.50 million by adding approximately $100 worth of VELO to the marketplace. Sonne is investigating the attacker and has suspended the marketplace to mitigate further losses. Sonne is prepared to offer a bounty to the attacker, promising not to pursue the issue further if the attacker returns the funds.