Inverse Finance, a decentralized financing protocol focused on lending, became the target of an apparent exploit on Saturday when about $15 million worth of cryptocurrency was lost during the incident.
I noticed the situation for the first time PeckShield , a blockchain analytics firm.
The team acknowledged the situation in a Saturday morning tweet, writing: “We are currently dealing with the problem, please wait for the official announcement». A similar message was posted on the Discord server for InverseDAO, the protocol’s control structure.
Blockchain data shows that the hack was committed immediately after 11:00 GMT. The lost funds were nominated in ETH, WBTC and DAI. Further blockchain data indicates that some Of the stolen ETH were sent to Tornado Cash, a popular transaction mixer on the Ethereum network, within an hour after the attack.
According to Inverse, the attacker targeted the Anchor money market (ANC) by artificially manipulating the prices of tokens, which allowed him to take out loans with extremely low collateral.
“This morning, one of the Inverse Finance markets, Anchor, underwent capital-intensive manipulation with the INV/ETH price oracle on SushiSwap, which led to a sharp increase in INV quotes. As a result, the attacker was able to take out a loan of $ 15.6 million in DOLA, ETH, WBTC and YFI,” the project team wrote.
This is the third multi-million dollar hack of the Decentralized Finance Protocol (DeFi) that has hit the headlines this week, and it highlights the increasingly sophisticated methods used by attackers. On Tuesday, the Ronin network, focused on games, announced the loss of more than $ 625 million in cryptocurrency, and then, two days later, the Ola Finance lending protocol reported that hackers were able to withdraw $ 3.6 million.