The latest decentralised finance (DeFi) attack was discovered by blockchain security company PeckShield, which allowed the exploiter to manufacture over 1 quadrillion Yearn Tether (yUSDT) from $10,000.
The security company claims that the hacker afterwards converted the yUSDT to other stablecoins, enabling them to seize stablecoins worth $11.6 million. Included in this are 61,000 Pax Dollars (USDP), 1.5 Million True Dollars (TUSD), 1.79 Million Binance Dollars, 1.2 Million Tether, 2.58 Million USD Coin, and 3 Million in DAI.
According to PeckShield, the hacker has already been successful in sending 1,000 Ether, which is presently worth over $2 million, to the authorised cryptocurrency mixer Tornado Cash. The DeFi protocols Aave and Yearn Finance were also notified by the blockchain security company to let them know what was happening.
After preliminary investigations, lending platform Yearn Finance declared that the problem was only with iearn, an old contract used before Vaults V1 and V2. The existing Yearn Finance contracts and protocols are not impacted by the exploit, according to the DeFi protocol.
Aave added that they are also aware of the transaction in the meanwhile. The Aave V1, V2, or V3 were unaffected by the hack, according to the liquidity protocol, which just confirmed this.
While hacks are still a problem in the DeFi industry in 2023, less money has been lost as a result of attacks than in earlier years.
Hacking losses in the first quarter of 2023 totaled more than $320 million, according to the quarterly report of blockchain security company CertiK. The losses were considerably less than those of the first quarter of 2022 ($1.3 billion lost) and the fourth quarter ($950 million lost to cyberattacks).
Editor- Sarah Fathima Ahmed
April 2023, CryptoniteUae