Yet another DeFi protocol is drained by malicious actors.
Deus Finance, decentralized finance (DeFi) protocol and a decentralized marketplace that facilitates the trading of both digital and non-digital assets, has suffered a loss of over $6 million due to a security breach in its stablecoin, DEI (DEI).
On May 5th, blockchain security firm PeckShield reported that a hacker exploited a vulnerability in the BNB Smart Chain (BSC), which led to a significant loss of more than $1.3 million.
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The Arbitrum network was also targeted. ARB/ETH deployments suffered more than $5 million in losses.
One Twitter user suggested the "root cause" of the exploit is "a basic implementation error in the token contract."
Shortly after the news from PeckShield, Deus Finance took to Twitter to confirm the exploit and claimed that it took steps to mitigate further damage by pausing all contracts and burning DEI tokens. The Deus team stated on Twitter:
We are currently in the process of comprehending the actual backing of DEI tokens.
On top of that, the firm promised to develop a "comprehensive recovery and redemption plan" after conducting a thorough examination of balances and snapshots.
On May 7th, Deus Finance revealed that the company "conducted a white hat rescue" and recovered a part of the stolen funds.
At the time of writing, DEI retails for $0.2408, recording a 17.09% increase in the last 24 hours.
It is not the first time Deus Finance has been targeted by malicious actors. In March 2022, the protocol experienced a flash-loan attack, which resulted in losses of over $3 million in Dai (DAI) and Ether (ETH).
