The project, which bills itself as a “decentralized bilateral OTC [over-the-counter] derivatives platform,” confirmed the attack, claiming that user funds are safe and that DEI lending has been halted. The platform offers two coins to its users, according to its website: the protocol token Dues and the fractional reserve stablecoin DEI, which is “majority-backed by a trusted stablecoin.”
As of now, no further information, including the amount lost, is available from the project.
However, according to the blockchain security firm PeckShield, the attacker made off with approximately USD 13.4 million, while the loss to the protocol could be even greater.
On the other hand, the alert account of the security-focused ranking platform CertiK tweeted that the attacker profited close to USD 16.84 million. Furthermore, according to the platform, the attacker had USD 15.7 million in assets in their wallet two hours ago. The wallet currently shows an ETH value of 2,483 as of 7:35 UTC. Until about an hour before press time, the attacker had been transferring funds.
According to the platform, ETH 5,446 (USD 15.78m) has been transferred to the privacy solution Tornado Cash.
The two companies shared the FTMScan transaction details, which revealed that millions of dollars were transferred just hours ago, mostly in USD coin (USDC) and partially in DEI. The funds from an address said to be involved in the hack have been transferred out, leaving the address with only USD 132.5.
According to PeckShield, “the hack is made possible by the flashloan-assisted manipulation of price oracle,” in which “the manipulated price of collateral DEI is then used to borrow and drain the pool.”
According to PeckShield, this is not the first time the decentralized finance (DeFi) marketplace has been exploited for millions of dollars worth of coins: just a little more than a month ago, on March 15, it lost some USD 3 million in a seemingly very similar or same fashion.
An exploiter used a flash loan attack against their Oracles, according to the post-mortem. “We will make everyone whole again — anyone affected by the exploit will be fully reimbursed,” the DeFi project’s team stated at the time.
To read our blog on “Bitcoin approaches USD 38,500, Ethereum struggles, and altcoins fall” click here.
