DeFi
UwU Loan Protocol by Former Frog Nation CFO 0xSifu Drained $19.3 Million
Decentralized finance (DeFi) lending protocol UwU Lend was compromised, resulting in a substantial loss of approximately $19.3 million in digital assets.
This event is the latest in a long series of incidents that have raised new questions about the security of DeFi platforms.
UwU loan protocol drained of $19.3 million
According to reports from leading blockchain security companies such as Arkham and Cyver, the attack was rapid: the hacker carried out three transactions in six minutes.
The security breach was first detected by Cyvers on its X platform, raising alarm bells for UwU Lend about activities that resulted in the unauthorized transfer of funds.
“The UwU loan contract was hacked and the attacker was able to steal substantial sums from liquidity pools,” said Meir Dolev, co-founder of Cyvers.
The stolen funds, which included major cryptocurrencies such as WBTC and stablecoins were quickly liquidated on the Uniswap exchange, making it difficult to track stolen assets.
Safety measures and industry response
This exploit is part of a growing concern in the crypto space as DeFi platforms continue to fall victim to hacks. This has led to a reevaluation of the security measures in place in the crypto space due to the repetition of these incidents.
Some of the measures recommended by experts include proper real-time monitoring and adopting strict security measures to protect user assets.
Additionally, the incident highlights the need for DeFi platforms to interact with their users to quickly share information when such actions take place, for credibility purposes.
Hacks preceding the UwU Lend hack
The UwU Lend hack is another attack in the crypto world this year, alongside other hacks such as the one that occurred at Bitcoin DMMa Japanese cryptocurrency exchange.
The DMM Bitcoin exchange was hacked last week and the exchange said it would purchase over 4,500 BTC to compensate affected users.
These consecutive incidents highlight the fact that there are still weaknesses in cryptocurrency exchanges and DeFi platforms and the need for stricter measures to address the problem.
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