White Hat Hacker Front-Runs Morpho Exploit, Rescues $2.6M in Crypto

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A white hat MEV (maximal extractable value) operator known as c0ffeebabe.eth intercepted a $2.6 million crypto theft targeting the Morpho protocol

On April 10, Morpho Labs pushed a front-end update for its Morpho Blue application to enhance transaction flows.

Also read: GitHub Malware Scam Exposed: Hackers Target Crypto Users Worldwide

However, the update introduced a vulnerability that was exploited a day later. Blockchain security firm PeckShield reported that a hacker used the flaw to steal approximately $2.6 million in digital assets from a compromised address.

White Hat Front-Runs the Attack

Enter c0ffeebabe.eth—a well-known MEV operator and ethical hacker. Using a bot, the white hat front-ran the hacker’s malicious transaction, effectively intercepting the stolen funds before they were fully drained.

As of now, the assets have been moved to a different wallet.

While it hasn’t been confirmed whether the funds have been returned to the original owner, c0ffeebabe.eth’s track record suggests a likely positive outcome.

Also read: zkLend $4.9M Exploit Takes an Unusual Turn—Hacker’s Plan Backfires

Morpho Labs Responds Swiftly

Morpho Labs quickly rolled back the faulty update and assured users that all core protocol funds remained safe and unaffected. In an April 11 post on X , the team wrote:

“All funds in the Morpho Protocol are safe and unaffected. The Morpho team will provide a detailed update later today in this thread.”

Following further review, the team confirmed the front-end is now secure, and no user action is needed. A more detailed post-mortem is expected in the coming days.

Also read: Explore the Evolution of Ethical Hacking in Crypto Security: Insights from Immunefi

A History of Ethical Intervention

This isn’t c0ffeebabe.eth’s first time stepping in to recover funds. In July 2023, the operator retrieved around 3,000 ETH (~$5.4 million) during the Curve Finance exploit. In early 2024, they again front-ran a malicious actor during the Blueberry protocol breach, successfully returning the stolen assets.

The DeFi community continues to praise the mysterious operator for using MEV strategies—a controversial but powerful tool in blockchain systems—for ethical and restorative purposes.

The Morpho Labs incident sheds light on both the inherent risks and community-driven resilience of decentralized finance.

As exploits continue to challenge protocol integrity, the presence of skilled white hats like c0ffeebabe.eth may become a cornerstone of on-chain defense. Stronger collaboration between developers and ethical hackers could be vital to building safer DeFi ecosystems.

Author

Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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