Hackers managed to empty funds by exploiting good contracts of defunct decentralized finance (DeFi) lending protocol Yield Protocol.
Yield Protocol shut down in December 2023, citing an incapacity to maintain up with the shortage of enterprise demand and international regulatory pressures. Following the wind-down, Yield Protocol suggested buyers quite a few occasions to shut their positions, withdraw funds and repay pending loans.
Regardless of the warnings, an unknown hacker stole roughly $181,000 value of crypto property from Yield’s strategic contracts current on the Arbitrum blockchain. The hack was first announced by blockchain investigation agency PeckShield and later confirmed by CertiK.
Primarily based on a follow-up investigation, CertiK’s discovered:
“The attacker exploited a discrepancy between the pool token steadiness and complete provide with flash-loaned property after which withdrew additional pool tokens.”
Official help for the Yield Protocol ended on Feb. 2, and regardless of a historical past of resurgence, an try and get better the hacked funds appears unlikely.
In March 2023, Yield Protocol, together with 10 different decentralized finance protocols, suffered losses after the attack on the noncustodial lending protocol Euler Finance. By July 2023, Yield Protocol had absolutely recovered from the Euler flash mortgage assault.
On the time, Yield Protocol labored with Euler on the return of the funds by deploying 26 new contracts and executing about 300 permissioned calls to reset the fixed-yield token maturities and restore the protocol.
Associated: Lazarus Group laundered over $200M in hacked crypto since 2020
Blockchain safety agency Immunefi lately reported a 23% decline in losses as a result of hacking and scams within the first quarter of 2024 in comparison with 2023.
According to the report, roughly $336.3 million was misplaced to hacking and fraud incidents in Q1 of 2024, down from $437.5 million in the identical quarter of 2023.
The report identifies 46 hacking incidents and 15 circumstances of fraudulent actions. Cross-chain bridge protocol Orbit Bridge lost the most at $81.7 million.
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