Yet another prominent DeFi protocol has fallen victim to a crippling security breach

An open-source protocol for lending and borrowing that runs on top of the Ethereum blockchain, Inverse Finance, has been hacked for $15.6 million. The team says that the hack is unrelated to the protocol’s smart contract.

Inverse Finance hack results in $15.6 million worth of losses

The attacker was able to artificially increase the price of the INV token by taking advantage of an oracle manipulation bug. This allows them to borrow millions of tokens, including wrapped Bitcoin (wBTC) and Yearn.Finance (YFI) on its Anchor money market.

Inverse Finance has suspended lending on Anchor due to the problem. Hackers had to deploy $3 million worth of ETH from an Ethereum-based Tornado Cash mixer to prevent the attack.

Most of the stolen funds were washed with the help of Tornado Cash, which would make it difficult for the authorities to trace the stolen tokens.
The Inverse Finance team says that no additional INV tokens will be minted after the attack.

Hackers who exploited the bug are being offered “a nice bounty” to return the stolen funds.

The decentralized finance industry continues to be under constant attack. Axie Infinity’s Ronin sidechain was recently drained of $540 million, marking one of the largest crypto-related hacks.

Nearly $5 million worth of cryptocurrency was also stolen from the Ola Finance protocol just a few days ago. Last year, DeFi hacks totaled $1.3 billion by 2021.

Total value locked (TVL) in protocols across all chains currently stands at $231 billion, according to data provided by DefiLlama.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like