DeFi hacks have become a significant concern for the entire crypto ecosystem. Solana’s stablecoin project Cashio recently lost $50 million in a hack. Dozens of victims were shocked after stablecoin CASH plummeted to a low of $0.00005.
What happened?
According to CashioApp, the hacker hacked into an “infinite” hole in the network to generate fake CASH tokens. The attacker generated around two billion additional tokens, then exchanged them for other stablecoins via CashioApp.
Please retweet for visibility.
— Cashio ($CASH) 💵 (@CashioApp) March 23, 2022
According to TRM Labs, the hacker moved the funds using the Jupiter and Wormhole bridge. Later the funds were moved from Solana to the Ethereum blockchain and exchanged for ETH. After that, the attacker decided to return the money to accounts that held less than $100,000 among those affected. The hacker announced, “all other money will be donated to charity.”
Divulging the details, security researcher Samczsun explained the hack in a tweet.
In order to mint new CASH, you need to deposit some collateral. This cross-program invocation (CPI) will transfer tokens from your account to the protocol’s account, but only if the two accounts hold the same type of token. Otherwise, the token program will reject the transfer. pic.twitter.com/r198sYAUHs
— samczsun (@samczsun) March 23, 2022
On March 15, the crypto derivatives platform Deus Finance was also hacked, in which more than three million USDC was stolen from Deus. It is known that the hacker laundered the funds from Tornado Cash after transferring them to Fantom (FTM) via Multichain. The number of DeFi projects getting hacked is increasing and leading most people to participate in crypto crimes.
Is crypto crime a growing trend?
According to the “Cryptocurrency Crime Report 2022,” Chainalysis claims that crime related to the crypto industry has increased significantly by 2021.
“2021 is a big year for digital thieves. Over the year, $3.2 billion in cryptocurrency was stolen from individuals and services – nearly six times the amount stolen in 2020. About $2.3 billion of that money was stolen from DeFi platforms, and the value stolen from these protocols is 1.330%.”
As the crypto industry continues to grow, investors don’t seem to be reassured by the rise of crypto crime. Even so, thorough testing of protocols will certainly help prevent hacks.
Read more:
- DeFiance Capital Founder Lost More Than $1.5 Million In An Attack On A Hot Wallet
- Li Finance Swap Aggregator Has Experienced A Smart Contract Exploit, Lost $600,000