Visor Finance was drained of $8.2 million after a hacker exploited a reentrancy bug, price shedding over 90%
Visor Finance is the latest DeFi protocol to suffer a multi-million dollar attack. This is the Ethereum-based DeFi project, which aims to enable programmable liquidity. Accordingly, it drained 8.8 million VISR tokens today after a hacker exploited a reentrancy bug. At the time, VISR was trading at roughly $0.095 after shedding over 90% of its value, bringing the total losses to around $8.2 million.
Visor Finance has been hacked, resulting in over $8 million worth of losses
Recent bugs have created a vulnerability for an attacker to obtain unlimited tokens. While a full post-mortem report has yet to emerge, it is thought that the hacker used the bug to change the owner of the rewards contract so that they could mint extra vVISR rewards tokens.
The Visor team shared details of the hack this afternoon, noting that it had discovered an exploit affecting its vVISR staking contract. The incident mainly affects VISR stakers and token holders because it has plummeted since the attack. The team added that no positions or hypervisors were at risk.
Post-Mortem for vVISR staking contract exploit and upcoming migration https://t.co/WewdhT8UcC
— Visor Finance (@VisorFinance) December 21, 2021
The Visor Finance team says it will be launching a token migration to compensate affected users. Visor has announced that it will arrange migration dates based on snapshots taken before the hack to compensate users. Migration of tokens is a popular strategy for overcoming DeFi hacks. They work by allowing token holders to redeem an equivalent amount of new tokens based on their initial holdings. In this case, they will redeem based on the amount of VISR they hold.
![visor-finance-was-drained-of-8-2-million-after-a-hacker-exploited-a-reentrancy-bug[1]](https://d3f5j9upkzs19s.cloudfront.net/azcoinnews/wp-content/uploads/2021/12/visor-finance-was-drained-of-8-2-million-after-a-hacker-exploited-a-reentrancy-bug1.png)
Source: Visor Finance
According to Etherscan, the attacker traded most of their VISR tokens for ETH through Uniswap. They have also started shipping funds through Tornado.Cash, a tool that helps keep Ethereum transaction history. However, they will end up being much lower than the nominal $8.2 million value as the token’s illiquidity causes the price to drop significantly. They deposited 243 ETH worth $978,561 at press time with around 3.6 million VISR and 0.475 ETH worth a total of $135,000 in their wallets. Their identities are still unknown.
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