Ede Finance, an Arbitrum-based DeFi project also referred to as El Dorado Exchange, was drawn into controversy after an incident that initially looked like a protocol exploit but then turned into an admission by the team that it had manipulated prices inside its own system. Reporting on the incident says an attacker described themselves as a white hat and claimed the protocol had a backdoor allowing core team members to liquidate or clear trades, while Ede Finance later said it had made an “ill-advised decision” to manipulate prices in an attempt to blacklist prior exploiters.

AI-generated background, compiled from web sources — not editorial content.

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