The DeFi lending protocol has been subject to an attack, putting the platform at a significant loss.
While the blockchain industry has been flourishing since the beginning of 2022, it seems that hackers have also increased their efforts to capitalize on the current success of crypto platforms.
The initial report on the Inverse Finance exploit came in from the blockchain security firm PeckShield on Twitter. With the sophisticated attack, the hacker managed to steal $15.6 million worth of Ethereum (ETH), Wrapped Bitcoin (WBTC), Dola Stablecoin (DOLA), and yearn.finance (YFI).
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Inverse Finance, in accordance with PeckShield’s investigation, told users on Twitter that the hack was done by manipulating the price oracle on the DeFi protocol’s money market. In fact, the hacker had to deposit 901 of his own ETH in order to pull off the exploit.
While the DeFi protocol has not yet announced any official details on reimbursement, the team assured that users impacted by the exploit will be fully repaid, and offered the hacker a "generous bounty" if he decides to return the funds.
The assets drawn from the protocol included almost 4M DOLA, 94 WBTC, 1,588 ETH, and 39 YFI, which were quickly mixed through Tornado Cash, becoming practically untraceable.
Just recently, another DeFi protocol Cashio was exploited for almost $53M, with the funds supposedly going to charitable causes.
Title for the largest crypto hack this year, however, goes to Axie Infinity’s Ronin Network, with the hacker gaining access to approximately $615M worth of digital assets.
