Third in a week: Yet another ETH based DeFi protocol suffers a $15.6 million exploit
Another day, anotherDeFi hack as this popular Ethereum based lending protocol suffered a multi-million dollar exploit. Inverse Finance, a lending-focused decentralized finance protocol, lost more than a $15 million loss.
Another prominent decentralized finance protocol has fallen victim to a crippling security breach. Inverse Finance, a stablecoin protocol that focuses on capital efficient yield generation, got drained in an exploit on 2 April. It lead to a loss of $15.6 million worth of digital assets.
PeckShield, a blockchain analytics firm, first flagged this situation.
<p lang=«en» dir=«ltr» xml:lang=«en»>Hi, @InverseFinance, you may want to take a look: https://t.co/KHHWAozWj1— PeckShield Inc. (@peckshield) April 2, 2022
The team acknowledged the situation in a Saturday morning tweet, posting: “We are currently addressing the situation please wait for an official announcement.” Similarly, posted on the Discord server for InverseDAO, the governing structure for the protocol.
PeckShield explained in a series of tweets that the hacker deposited 901 Ethereum to the protocol and used an oracle manipulation bug to manipulate the price of Inverse’s INV token. They then used INV as collateral to borrow assets and drain the protocol.
The hackerdrained millions of dollars in YFI, WBTC, and Inverse’s own DOLA token from the protocol. Later, used decentralized exchanges such as Uniswap to trade the assets for Ethereum. Finally, the Ethereum wallet connected to the hacker siphoned 4,200 Ethereum worth around $14.6 million through Tornado Cash‘s transaction mixer to cover their traces.
<p lang=«en» dir=«ltr» xml:lang=«en»>4) The initial funds to launch the hack are withdrawn from @TornadoCash and most of the result gains are deposited Read more on ambcrypto.com
