A weekend attack drains the decentralized dForce protocol

According to DeFi Pulse, the decentralized financial protocol dForce lost more than 99% of its assets in an attack last Saturday night.

Contents hide

1 $ 25 million gone in a flash

2 Maybe the imBTC token behind the attack

3 A second attack a few hours later

4 dForce had signed a strategic growth deal just a week ago

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$ 25 million gone in a flash

The Lendf.me loan protocol saw around $ 25 million in ether (ETH) and bitcoin (BTC) disappear from its wallets on the night between Saturday and Sunday after the direct attack on its money market. Lendf is one of two protocols supported by the dForce Foundation.

"Lendf.me confirmed that he was attacked at 8:45 am in Beijing on Sunday, at the height of block 9899681," Lendf.me told the Chinese media Chain News. dForce has not yet commented on the matter. And how do you trade your cryptocurrencies? Have you already tried automatic trading software like Bitcoin Pro? Let us know in the comments.

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Maybe the imBTC token behind the attack

Previous speculations from other manufacturers of DeFi protocols claim that the attack was caused by imBTC, an ethereum token anchored one-to-one with bitcoin, used as a guarantee that has proven to be fraudulent, allowing the attacker to drain funds almost free of charge.

It is unclear whether the users were able to withdraw their funds or whether the thief who organized the theft seized all the $ 25 million. Compound CEO Robert Leshner said the hacker seized the total amount.

Lendf's website was unusable for several hours, reporting the "Do not supply anymore!" Warning, while Mindao Yang, CEO of dForce Foundation, said in the Telegram open channel of the protocol that the team "was still investigating" on the incident and urged users to "do not upload any good on lendf.me for the moment". The website came back active shortly after 04:00 UTC.

A second attack a few hours later

After the serious attack, DeFi Pulse reported the balances of some accounts on Lendf with $ 18,900 in USD, or around 101 ether (ETH) or 2.6 bitcoins. A few hours later, that amount dropped to $ 6. "This is an attack following yesterday's Uniswap imBTC attack," said DeFi Pulse, noting that imBTC is an ERC-777 token and "not a normal Ethereum resource."

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He also added that "Smart contracts that include imBTC must be extremely cautious and write additional code to protect against return attacks."

dForce had signed a strategic growth deal just a week ago

A tweet that stands out on Lendf's Twitter page calls it "by far the largest #DeFi stablecoin fiat-back loan protocol." The dForce Foundation closed a $ 1.5 million strategic round led by Multicoin Capital and supported by Huobi Capital and the Chinese bank CMB International (CMBI) last week. The funds were intended to grow its staff and launch new DeFi products in the coming year.