- DEUS Finance has suffered a hack due to a vulnerability in DEI stablecoin.
- Significant progress has been made in the recovery efforts.
- Uncertainty remains as to whether the rest of the missing funds will be recovered.
DEUS Finance, a DeFi protocol, recently fell victim to a hack that resulted in the loss of more than $6 million. The attacker exploited a vulnerability in DEUS Finance’s own stablecoin, DEI, on both the BNB Smart Chain and Arbitrum networks. However, there is some good news – a significant portion of the stolen funds have been recovered.
According to blockchain security company PeckShield, the attack on the BNB Smart Chain network exploited a public burn vulnerability, resulting in a loss of more than $1.3 million. The attacker also targeted the Arbitrum network, resulting in a loss of more than $5 million.
Arbitrum is a Layer-2 scaling solution for Ethereum and has its own ARB token. The attack on DEI also impacted the value of the stablecoin, which is meant to be pegged at $1 but has not traded at its intended peg since May of last year. At the time of writing, DEI’s price was at $0.28, according to CoinMarketCap.
PeckShield Uncovers Root Cause of DeFi Attack
PeckShield shared additional details about the attack in a tweet, with other users confirming that a fundamental implementation error in the token contract was the root cause of the attack.
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However, one user claimed to be using white hat hacking techniques to recover some of the lost funds, which appears to have worked – the recovered funds have been sent to a special wallet managed by DeFi developer @lafachief and “trusted members” of the Yearn Finance DeFi project.
The team behind DEUS has confirmed that the recovered funds are now held in a multi-signature wallet, which currently holds 2,023 ETH tokens worth approximately $3.8 million, along with $158,857 worth of DEUS tokens and $702,370 worth of the stablecoin USDC.
On the Flipside
- DEI, the stablecoin at the heart of the hack, has not traded at its intended peg since May last year.
- Despite the recovery of some of the stolen funds, the fact remains that DEUS Finance suffered a significant loss of over $6 million.
Why You Should Care
The DEUS Finance hack is a reminder that DeFi protocols are not immune to attacks, and vulnerabilities can be exploited to steal millions of dollars. The incident highlights the importance of robust security measures and the need for increased vigilance in the DeFi space to protect investors and prevent similar attacks from happening in the future.
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To learn more about the recent surge in Bitcoin balances and the decline of stablecoin investments, read here:
Investors Dump Stablecoins as Balances Pour into Bitcoin
For insight into XRP whales’ movements during the recent crypto market sell-off, check out this article:
