Zunami Protocol Lost $2.1 Million In Price Manipulation Attack
Zunami Protocol has been exploited and the attackers stole over $2.1 million in price manipulation attacks. Blockchain security firm PeckShield identified the attack first and suggested users to take action. It is estimated that Zunami Protocol lost more than 2.1 million from the liquidity pool hosted on Curve Finance.
Criminal actors managed to steal crypto assets by manipulating the price. PeckShield advised people not to buy any Zunami Ether (zETH) or Zunami USD (UZD) stablecoins. The price dropped drastically after this incident. Zunami Protocol admitted this attack and confirmed that on X.
Investors invest in crypto to get a return. They do not intend to do anything in crypto to lose their crypto assets. We get many offers in crypto that are lucrative. Sometimes you feel like you are lucky and get into FOMO. Unfortunately, you will lose everything if hackers find any vulnerability in the protocol that you use to earn yield.
People can stake stablecoins on Zunami Protocol to get the highest yield on the market. Most people hold stablecoins and they do not earn any from that. Staking stablecoins on Zunami Protocol and getting APY sounds great. But users have to take high risks.
If there is no news about hacks and scams in crypto, that would be great. Users might not expect that it will happen in Zunami Protocol while they expect to get APY. Now Zunami Protocol urges users not to buy Zunami Ether (zETH) and Zunami USD stablecoin (UZD). Unfortunately, crypto scams and hacks have increased significantly that you cannot underestimate.
The attackers sent the stolen fund to the crypto mixer Tornado Cash. I am wondering whether the team of Zunami Protocol did not have anything to do to prevent this exploit in the first place. SlowMist founder Xian Yu disclosed something that is sad.
According to Xian Yu, they found out about the vulnerability almost two months ago. Then they informed the Zunami Protocol and ended up getting an unpleasant response. Let's see what Zunami Protocol does now. If there is any option to prevent any exploit and attack in the first place, that is always better.
