One unexpected bad incident happened last Saturday night- hackers attacked on the DeFi platform. The decentralized finance (DeFi) protocol dForce loses 99% Of its assets. According to DeFi Pulse, in that attack, $25 million of Bitcoin and Ether out of wallets after the money market pool was attacked on late Saturday and early Sunday morning.
Hackers utilize DeFi lending protocol
All of us know that decentralized finance has been central to the Ethereum ecosystem over the past year. But unfortunately, this use for the second-largest blockchain doesn’t come without its own set of flaws.
While the news was not available, Lendf.Me’s website could not be accessed. But it confirmed that the attack took place at block number 9899681 at Beijing time 19th April, at 8.45 (TSI 03.45). DeFi Pulse data shows that the total locked value in the dForce ecosystem has decreased to $ 6 in the past 24 hours. However, the amount in the system was $ 24.9 million the day before.
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Moreover, information comes from the popular DeFi data monitoring resource DeFi Pulse. The platform reveals that the total value locked (TVL) in USD in dForce. And dramatically reduced from $25 million to about $10,000.
The amazing thing is the bad news comes just a few days after dForce closed a successful financing round of $1.5 million. That led by Multicoin Capital, which also included co-investors China Merchant Bank International and Huobi Capital.
dforce loses 99% of its assets: The cause behind the attack
dforce loses 99% of its assets. Which is about $25 million worth of its customers’ cryptocurrency. Due to a well-known exploit of an Ethereum token, imBTC. On the other hand, another lending protocol compound accused Lendf.Me of stealing his code. Compound CEO Robert Leshner said on his twitter that the firm “copy/pasted Compound v1 without changes”.
Stating that imBTC has an ERC-777 token and no normal Ethereum asset, Leshner said, “This is a complementary attack on the imBTC Uniswap attack that took place yesterday”. He also added, “Attention should be paid to smart contracts containing imBTC and additional code should be written to protect against re-entry attacks”.
Writer, researcher, and analyst on cryptocurrency and blockchain technology at L&P Digitech Pvt. Ltd. Also managing the content with SEO at this current company. Keen interest to know more about new technologies related to the crypto world and blockchain technology. Completed Masters in Computer Application (MCA) and holds Post Graduate Diploma in Instructional Designing with sound knowledge in Articulate3. Out of all, love to travel, listen to music, and to eat also.