UwU Lend Temporarily Suspends Operations Following $23M Hack Incident
UwU Lend, a decentralized finance (DeFi) platform established by Sifu, ex-CFO of Frog Nation, encountered a significant security breach
UwU Lend, a decentralized finance (DeFi) platform established by Sifu, ex-CFO of Frog Nation, encountered a significant security breach resulting in a loss of approximately $19.4 million.
The attack, initially identified by the cybersecurity firm Cyvers, involved a sophisticated manipulation of Oracle sources that oversee asset pricing.
Within a mere six minutes, the perpetrators executed three rapid transactions, converting stolen Wrapped Bitcoin (WBTC) and Dai (DAI) into Ethereum (ETH) using funds sourced from the controversial mixer, Tornado Cash.
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— mariushav (@mariushav) January 3, 2024
Details of the Oracle Manipulation Attack
On June 10, the attack unfolded at breakneck speed, with Cyvers detecting the anomaly and raising the alarm via social media. The attackers manipulated the price feed for the sUSDe asset, exploiting vulnerabilities in the aggregation method that pulls data from various sources.
You are Being Attacked! UwU Lend Loses $20 Million in Flash Loan Attack
TLDRUwU Lend, a decentralized finance (DeFi) protocol, was hacked for nearly $20 million on Monday, June 10.
The attack was first discovered by on-chain security firm Cyvers, which alerted UwU Lend abou… pic.twitter.com/edHItj5y4L
— nickletipping.wiki (@NotAnotherTip) June 11, 2024
This manipulation led to erroneous price reports that facilitated the illicit withdrawal of funds. UwU Lend responded by freezing all platform activities, reducing lending and borrowing rates to zero, and commencing an in-depth investigation into the breach.
“In light of recent events, we’ve taken immediate action to secure our platform and review our systems to prevent future incidents,” stated a representative from UwU Lend on their official communication channel.
The Aftermath and Response to the Attack
Michael Patryn, the founder of UwU Lend known as 0xSifu, has proactively offered a settlement to the hacker, proposing a return of $16 million in stolen assets in exchange for amnesty from prosecution.
According to DL News, Michael Patryn (known as X account name 0xsifu), former CFO of Frog Nation and a co-organizer of the DeFi project, proposed a 20% white hat bounty in connection with the hacking incident of the DeFi protocol UwU Lend. Patryn, the founder of UW Lend, which…
— BitcoinWorld Media (@ItsBitcoinWorld) June 10, 2024
This offer aims to mitigate the impact of the hack and recover a substantial portion of the lost funds. The stolen cryptocurrencies, including WETH, WBTC, and various stablecoins, remain in two digital wallets, closely monitored by the crypto community and authorities.
Cyberspace security analysts predict that the total value of crypto assets stolen in 2024 might exceed the figures recorded in 2023, driven by the increased market value of these assets.
“The allure of high-value digital assets continues to draw sophisticated cybercriminals, underscoring the critical need for robust security measures in the blockchain ecosystem,” commented a cybersecurity expert from Peckshield, which had audited UwU Lend’s protocols and found them previously secure.
http://twitter.com/jer_iee/status/1800907558971990455
UwU Lend reassures its users that despite the setback, most of the platform’s funds, including newer cryptocurrencies like SIFU and FRAX, remain secure and unaffected by the hack. The firm is committed to enhancing its security measures to safeguard against future attacks and restore trust among its users.
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