Value DeFi exploited with hackers taking home $5.4M.

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Avatar for alberdioni8406
3 years ago
Topics: Cryptocurrency, Hack, Ethereum, Defi, News, ...

One more protocol exploited, with hackers this time taking home more than $5 millions in crypto assets. Value DeFi have lost assets in DAI stablecoin ($5.4 in a total of $7.4M they stole, luckily they returned $2M and kept $5M to them), the incident happened this Saturday.

The attackers used a flash loan to steal those assets. Flash loans give permission to users to borrow funds instantly as long the user returns it within one transaction block, allowing them to take advantage from uncollateralized loans. So the attackers borrowed 80,000 ETH from the Aave protocol, and in a curious move the hackers after borrowing it they returned $2M and kept the millionaire "reward" of $5.4M to them and fill their pockets with peoples funds.

This wasn't all the criminals did, as part of the attack they left a message to the Value Team, it seems the hackers are playing with the team behind Value DeFi showing them that they can exploit the protocol and steal funds from it, on Friday the Value DeFi team said on a thread that they have prevention to flash loans attacks, but seems they were wrong about.

The incident was confirmed by the Value DeFi team on their twitter official account, and soon I believe, they will release a post mortem article on the official channels of the company.

This was the second attack on DeFi protocols after the Harvest.Finance lost funds due to a breach who made the hackers to access more than $20M in people funds locked on smart protocols, this attacks won't end and it's necessary to teams behind this business to stay up-to-date with their security system. Hackers are becoming more sophisticated than ever, the security exploit they do it possible because they are evolving in the same way the security team are. They have the latest softwares and methods to break even the best ways to protect a multi billionaire business.

Most unnaudited protocols are vulnerable to this kind of attacks, that even the audited ones can fall on them, flash loans are the ones who cause severe damage to protocols, early this year zBx protocols also suffered several losses due to this kind of attack. Luckily most of this hackers who exploit this business somehow manage to return some of this funds and keep some, it seems they don't wanna kill the business just show them that can break their security and steal some money from them, in the case from Value DeFi they took home $5.4M in funds.

The companies dealing with smart protocols must have security measures that can enhance and assure they clients that can have the funds with them safely. Have been proved that criminals who steal from this protocols do their homework and knows which protocols are vulnerable, negligence of this team behind this kind of business take them to get exploited and led people to get ripped of their hard earned cash, most of this business can't assure the return of peoples money.

Does why it's need to make a good valuation when wanna deal with smart protocols, make an exhausted research and only after that put money into them, after hacked this companies (most of them) doesn't last and can vanish anytime, so DYOR is a must in this cases.

Never negligence your money!

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Have a great Sunday.

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Avatar for alberdioni8406
3 years ago
Topics: Cryptocurrency, Hack, Ethereum, Defi, News, ...

Comments

I thought that the DeFi protocols were more secure, it's really interesting to read articles like these that spot vulnerabilities

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3 years ago

There is some that are more secure than others but this protocols are susceptible to hacking due to their nature, they have are lot of money on them and cyber criminals are putting eyes on them!

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3 years ago

Nice one

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3 years ago

Questo è il problema con i protocolli DeFi. Da un lato sono inclini alle vulnerabilità, dall'altro sono negli occhi di tutti gli hacker. Ciò mina la fiducia che le persone riporranno successivamente nell'agricoltura DeFi ed è probabile che l'euforia finisca presto e bruscamente.

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3 years ago

Like

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3 years ago

Este es el problema con los protocolos DeFi. Por un lado, son propensos a las vulnerabilidades, por el otro, están en el ojo de todos los piratas informáticos. Esto socava la confianza que la gente depositará sucesivamente en la agricultura DeFi y es probable que la euforia termine pronto y abruptamente.

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3 years ago

Exactamente.

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3 years ago

I do not use DeFi, yet, because I think it needs to evolve, to be secure. It reminds me the early days of Bitcoin.

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3 years ago

Need to evolve and it also need more security system on them, all hacking happening on smart protocols are made using flash loans🥺

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3 years ago

Quite interesting.. Defi is also good for btc , eth

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3 years ago

বর্তমানে ইন্টারনেটের হ্যাকিং অনেক বড় একটা সমস্যা

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3 years ago

सौभाग्य से मैं ऐसी चीजों का उपयोग नहीं करता। मेरा BCH और ETH ऑफलाइन है और केवल मुझे ही बीज का पता है।

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3 years ago

@Telesfor sir, this is the Hindi translation of your comment. Ingenious are there ways.

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3 years ago

People need to take security seriously.

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3 years ago

Yes it's needed and people may fail to make income online due to this problem, security must not be negligent

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3 years ago

This is the problem with DeFi protocols. For one side they are prone to vulnerabilities, on the other, they are on every hacker's eye. This undermine the confidence people will successively deposit into DeFi farming and is likely the euphoria to end soon and abruptly.

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3 years ago

Hackers are not taking measures to get more knowledge on cracking this protocols they are investing higher on software to stay up-to-date with the right tools to break this ones.

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3 years ago

That's cool

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3 years ago

This is interesting, how

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3 years ago

আমি অনলাইনে কোন ওয়ালেটে কাজ করে না বাট অফলাইন যেগুলা ওইগুলা করে

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3 years ago

Have some brain to write your original comments atleast.

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3 years ago

A lot of these attacks are perpetuated by people on the inside of the network. Although possible, it isnt easy to just hack a solid system that has millions of people's funds

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3 years ago

Nice article

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3 years ago

Thanks. I appreciate

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3 years ago

oh i use coin base and trust wallet and i feel all of them are secured

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3 years ago

That's is good as you own the wallets seed💰

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3 years ago

yes absolute

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3 years ago

Fortunately I don't use such things. My BCH and ETH is offline and only I know the seed.

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3 years ago

That's the most important thing in crypto keeping assets secure and better offline.

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3 years ago