Hackers withdrew $ 8 million from Warp Finance's DeFi protocol

Hackers withdrew $ 8 million from Warp Finance’s DeFi protocol
CONTENT

  • Warp Finance protocol lost $ 8 million in hacker attack

  • Attacker used flash credit scheme

  • Developers recommend not to deposit money into accounts

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Hackers withdrew $ 8 million from Warp Finance's DeFi protocol

Warp Finance Decentralized Finance Protocol Lost $ 8 Million in Flash Credit Hacker Attack

Warp Finance P2P lending platform has been hacked. Reported by the DeFi serviceDecentralized Finance (DeFi) is a financial services built on the basis of blockchain technology that offer users access to an open, efficient and … More Prime, citing data from the Etherscan resource.

The attacker withdrew $ 8 million from the protocol using a flash credit scheme. It allows you to take loans for a short period without collateral, provided that the loan is returned immediately, within one block. This handy feature is often used by cybercriminals to steal money from DeFi protocols. In November, hackers empty the bins of the Origin Dollar protocol.

Hackers withdrew $ 8 million from Warp Finance's DeFi protocol

Read about what else terrible happened in the decentralized finance industry in our article..

Warp Finance promises to return the money

The Warp Finance team confirmed the fact of the hack and advised users not to place deposits in stablecoins until the circumstances were clarified.

“We are investigating suspicious loans made in the last hour and recommend not depositing stablecoins into the account until we have clarified all the details.”.

Later, the project reported that the hacker had stolen $ 7.7 million in total, while one of the vaults still contains $ 5.5 million. The developers plan to recover these funds and pay them to the affected users..

“In the coming days, we will publish a detailed analysis of what happened and talk about the next steps,” they wrote..

Hacker went broke on commissions

Hackers withdrew $ 8 million from Warp Finance's DeFi protocol

Experts point out that the hacker used the Tornado Cash mixer to hide traces of ETH transactions and used a complex scheme involving the Uniswap and dYdX protocols. Similar manipulations were used to break the Pickle Finance protocol.

This time, the hacker was less calculating. According to popular crypto-twitter blogger Nick Chong, the attacker got only $ 1 million in ETH. The rest had to be spent on commissions.

The expert claims that the hacker poured a lot of money into illiquid pairs on Uniswap, which led to large slippage in flash swaps. In addition, at least $ 2.4 million was spent on commissions for an automated market maker (AMM).

Since the beginning of the year, the blockchain industry has lost almost $ 14 billion due to hacker attacks.

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