Hackers have successfully stolen $25,000,000 from two separate pools on the decentralized lending platform dForce, draining Ethereum (ETH) and Bitcoin-pegged assets over the weekend.
Mindao Yang, founder and chief executive of the dForce Foundation, confirms the hack of users’ funds in a new blog post. Yang says that the crypto hackers have expressed a desire to negotiate.
“The hacker(s) have attempted to contact us and we intend to enter into discussions with them.”
According to a report by Slow Mist, several cryptocurencies, including multiple stablecoins, were stolen.
Operations of dForce Foundation’s protocols Lendf.Me and USDx are temporarily shut down and the website is offline. Lendf.Me is a decentralized money-matching protocol that uses smart contracts for easy borrowing. Borrowers and lenders on Lendf.Me can deposit and withdraw USDx at any time, subject to liquidity, and users can lend USDx to earn yields.
The DeFi analytics and rankings platform DeFi Pulse shows that assets locked in the dForce network plummeted by nearly 100% after the attack, wiping out the holdings.
According to an analysis of the exploit by the team at Tokenlon, a decentralized exchange, the hackers were able to exploit a vulnerability in a smart contract that links ERC777 tokens and Uniswap/Lendf.Me contracts.
SlowMist reports that after stealing the cryptocurency, the attackers converted it to ETH and other tokens on decentralized exchanges.
“We are doing everything in our power to contain the situation. We have contacted law enforcement in several jurisdictions, reached out to asset issuers and exchanges to track down and blacklist the hacker(s)’s addresses, and engaged our legal teams.”
DForce is one of China’s largest decentralized finance platforms for lending fiat-backed stablecoins. Last week, the platform raised $1.5 million in funding from Multicoin Capital, Huobi Capital and CMB International.
The weekend hack follows another DeFi exploit that happened earlier in April when Bisq, a decentralized exchange that enables users to trade anonymously, revealed that hackers had uncovered a critical security vulnerability that allowed them to steal $250,000 in Bitcoin and Monero from the platform.
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