- Dough Finance has reached out to the hacker who exploited its smart contract on Friday.
- The protocol lost over a million to the exploit.
- The hacker has been issued an ultimatum.
DeFi protocol Dough Finance has warned the hacker who exploited its smart contract on July 12 to return the stolen funds within two days or face legal consequences.
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The warning comes after Web3 security firm Cyvers alerted the X crypto community to multiple “suspicious transactions” on the protocol early Friday. While Cyvers confirmed the incident didn’t affect AAVE pools as initially thought, the company said over a million was stolen in the aftermath.
Dough Finance Exploit
Per the alert issued by Cyvers, the attacker was funded through Railgun before exploiting Dough Finance for approximately $1.8 million USDC, which was all converted into Ether.
Web3 security provider Olympix’s alert on the incident also quoted the same amount of funds lost and provided a breakdown of the situation “based on available information.”
“The exploit stemmed from unvalidated calldata within the ConnectorDeleverageParaswap contract. The contract didn't properly check the data it received during flash loan calls, allowing the attacker to manipulate it for their benefit,” Olympix wrote on X.
While the Dough Finance team has yet to issue a public statement on the incident, it has initiated funds recovery efforts.
Ultimatum to the Hacker
Hours after the incident, the Dough Finance team wrote an on-chain message to the hacker, inviting them to “discuss the next steps.” The team gave the hacker options to either out through the provided email address or transfer the stolen funds to a given address.
“If we do not hear back from you by Monday, July 15, 2024, 23:00 UTC we will assume you appropriated the funds with unlawful intent and we will pursue all criminal, legal, and administrative avenues available for the purpose of recovering the misappropriated funds,” the team warned.
According to the message, Dough Finance’s immediate action after the incident included involving “appropriate authorities” to investigate and facilitate the recovery of the stolen funds.
Stay updated on how much hackers stole from the crypto industry in the first half of the year:
Crypto Theft Loss Doubles to $1.38B in First Half of 2024
Read about the Evolve Bank hack:
Did Evolve Bank Know About Hack Weeks Before Alerting Users?
