Hacker attack: Deus Finance's DeFi protocol reported hacked
Hacker attack: Deus Finance's DeFi protocol reported hacked
Deus Finance, a digital asset trading platform on the Ethereum blockchain, suffered a hacking attack with a loss of $6 million.
It is known that on May 5, a hacker breached the DEI Algorithmic Stablecoin security system and used an exploit on the BNB Smart Chain (BSC) and Arbitrum networks.
As a result of the hack, the fraudster launched a bot developed on BSC, resulting in a loss of more than $1.3 million. He then hacked Arbitrum and misappropriated more than $5 million, according to PeckShield analysts.
Deus Finance representatives released a statement about the hack while suspending smart contracts. To minimize the losses, developers burned DEI tokens in affiliate chains but first copied the balances before burning them. This will allow the company to compensate users for their losses after the DeFi protocol is reactivated.
The management asked users to be patient, limit any activity with current DEI contracts, and wait for an announcement of the redemption plan.
After the hack, a drop in the value of DEI's stablecoin to $0.2 was noted, although the price had previously been $0.3. A few hours later, DEI corrected slightly and is now trading at $0.26. The asset is used as collateral for third-party instruments on the Fantom protocol.
This isn't the first attack on the protocol: in March 2022, fraudsters attacked Deus Finance with instant loans and stole about $3 million, and later another $13.4 million was stolen.
As a reminder, we reported that Bitcoin was down more than 2% after the weekend.
