DEUS Finance, a DeFi protocol, was hacked over the weekend, resulting in a loss of over $6 million. The hackers exploited a vulnerability in DEUS Finance’s own stablecoin DEI on BNB Smart Chain and Arbitrum networks. However, a significant portion of the lost funds has now been recovered.

The Hack

According to blockchain security firm PeckShield, the attackers used a public burn vulnerability to hack the BNB Smart Chain network, resulting in a loss of over $1.3 million. Additionally, they targeted the Arbitrum network, leading to a loss of over $5 million. The attack was reportedly caused by a basic implementation error in the token contract.

The Recovery

One user who claimed to have identified the root cause of the attack has been working to recover some of the lost funds using white hat hacking techniques. The recovered funds have been sent to a special wallet managed by DeFi developer @lafachief and trusted members of the Yearn Finance DeFi project. At the time of writing, the wallet holds $3.8 million worth of ETH tokens, $158,857 worth of DEUS tokens, and $702,370 worth of the stablecoin USDC.

The Future

It remains unknown whether the rest of the missing funds will be recovered and if affected users will be compensated. DEI, which is supposed to be pegged at $1, hasn’t traded at its intended peg since May of last year, and at the time of writing, the price stood at $0.28. The incident highlights the need for better security measures and auditing processes in the DeFi industry.


Articles You May Like

The Fed Raises Benchmark Interest Rate in Effort to Curb Inflation
The Future of Cold Calls: U.K. Regulators Introduce Ban on Consumer Financial Services
New Brunswick Power Company Denies Energy Applications from Crypto Miners
Bitcoin Could See Historic Gains with Bollinger Bands Breakout

Leave a Reply

Your email address will not be published. Required fields are marked *