Friday, October 7

Inverse Finance hacks result in a loss of $15.6 million.

The hacking incident happened yesterday 2nd April 2022 the inverse finance, an open-source protocol for lending and borrowing that runs on the Ethereum blockchain has been gotten to be $15.6 million.

The team says the hack was not related to the smart contract. The attacker was able to inflate the price of the token by taking an advantage of an oracle manipulation bug, this allowed them to borrow millions in different tokens, including the Yearn.Finance(YFI)  and Bitcoin (wBTC) on its anchor money market.

Etherscan print

Hackers’ methodology

Most of the funds have been laundered with the help of tornado cash, which makes it hard for the authorities to track down the ill tokens as the Hacker had already deployed $3 million worth of ETH from Ethereum-based mixer Tornado cash to pull off the attack.

The Inverse Finance team says that no additional INV tokens will be minted in the aftermath of the attack.

Read also: Ethereum DeFi protocol inverse Finance suffers an exploit.

The hacker who exploited the bug is being offered “a generous bounty” in exchange for coming forward to return the stolen funds.

Account of DeFi hacks

As the DeFi space continues to grow significantly in recent times, hackers have turned the sector into their playing ground, stealing billions of dollars from different protocols. 

Last August, DeFi protocol PolyNetwork suffered a major hack with hackers carting away $600 million worth of crypto assets. 

In January 2022, hackers drained over $80 Million from Qubit Finance. Coinfomania reported a few days after the Qubit hack that Cross-chain bridge protocol Wormhole suffered a security breach and lost more than $300 million worth of digital assets.

Read also: Ripple withdrew one Billion XRP and 412 million was moved

DeFi hacks have continued to increase yearly and seem to be unending. The market accounted for over 76% of all crypto-related hacks last year, which amounted to around $361 million, 2.7x higher than 2020, according to a report by crypto intelligence firm, CipherTrace.

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