On Saturday, blockchain security firm PeckShield issued a warning that the DeFi protocol Inverse Finance had been abused, with hackers stealing around $15 million.
According to the security firm’s findings, the hackers launched the assault using an Oracle issue by manipulating the price of INV, Inverse Finance’s native token, and using the cryptocurrency as collateral to steal additional tokens from the protocol.
Yearn Finance (YFI), Wrapped Bitcoin (WBTC), and DOLA are among the stolen assets. To evade detection, the hackers exchanged the tokens for Ether (ETH) on Uniswap before transferring the cash to Tornado Cash.
A few hours after the event, the Inverse Finance team created a Twitter thread to inform users about the problem. If the decision is approved by DAO, the initiative intends to completely refund impacted consumers. Inverse Finance has said that it has no intentions to issue more INV tokens to compensate impacted consumers.
The breach had an impact on the value of INV, which decreased by 12% in the previous 24 hours to $333.67. As the DeFi area has grown dramatically in recent years, hackers have turned it into a playground, stealing billions of dollars from various protocols.
Last August, the DeFi protocol PolyNetwork was hacked, and hackers stole $600 million in crypto assets.
Hackers stole more than $80 million from Qubit Finance in January 2022. A few days after the Qubit attack, it was announced that the Cross-chain bridge protocol Wormhole experienced a security compromise and lost more than $300 million in digital assets.
DeFi hacks have been increasing year after year and appear to be limitless. According to a survey by crypto intelligence firm CipherTrace, the industry accounted for more than 76 percent of all crypto-related attacks last year, totaling roughly $361 million, 2.7 times more than in 2020.
02 Feb 2023
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