Tuesday, January 31, 2023
    HomeDEFIFei Protocol Exploited For $80 Mln, Funds Moved Into Tornado Cash

    Fei Protocol Exploited For $80 Mln, Funds Moved Into Tornado Cash


    Ethereum-based DeFi change Fei Protocol misplaced about $80 million price of tokens in an exploit on Saturday, on-chain information confirmed. The protocol provided the hacker a $10 million bounty to return the stolen funds.

    In a collection of transactions, the attacker appeared to have moved  about $80 million of Wrapped Ethereum from the protocol, and into their private pockets. The hacker now seems to be laundering the stolen funds into mixer Twister Money, the place they’re sure to develop into untraceable.

    A number of liquidity swimming pools belonging to Rari Capital and Fei seemed to be the goal of the assault.

    Fei is an Ethereum-based protocol that makes use of tokenomics to take care of the 1:1 greenback peg for its stablecoin Fei USD. However the information of the hack seems to have destabilized the stablecoin, which is now buying and selling at $0.986, based on information from Coinmarketcap.

    Fei’s governance token, $TRIBE, plummeted 10% in minutes after the assault.

    Fei Protocol presents $10 mln bounty

    On its official twitter deal with, the DeFi protocol acknowledged the hack, and provided the exploiter a $10 million bounty to return the funds.

    We now have recognized the foundation trigger and paused all borrowing to mitigate additional harm. To the exploiter, please settle for a $10m bounty and no questions requested in the event you return the remaining person funds.


    However provided that the funds are already being moved right into a token mixer, it appears unlikely that such a state of affairs will play out.

    Crypto safety agency Blocksec said the reason for the exploit is because of a typical “reentrancy vulnerability,” a standard vulnerability in Ethereum-based good contracts.

    The same exploit was used within the now-infamous DAO Hack of 2016 to steal over $70 million price of tokens.

    A foul week for DeFi?

    This week has seen a string of exploits and hacks within the DeFi house, with a complete of over $100 million in tokens being stolen. Earlier on Saturday, Ethereum-based DeFi protocol Saddle Finance was exploited to steal over $10 million.

    Fantom-based Deus Protocol lost $13 million earlier this week. The perpetrators of those assaults are unknown.

    However the U.S. authorities had not too long ago warned {that a} infamous North Korean hacking group, known as Lazarus, is popping its sights on DeFi protocols. The group is behind the record-breaking Axie Infinity hack, which noticed over $600 million stolen.

    With greater than 5 years of expertise overlaying international monetary markets, Ambar intends to leverage this information in the direction of the quickly increasing world of crypto and DeFi. His curiosity lies mainly find how geopolitical developments can impression crypto markets, and what that would imply on your bitcoin holdings. When he is not trawling via the net for the most recent breaking information, you will discover him enjoying videogames or watching Seinfeld reruns.
    You’ll be able to attain him at [email protected]

    The introduced content material might embrace the private opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability on your private monetary loss.

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