- OpenLeverage has been hit in multiple attacks.
- The protocol discontinued some of its services following the attacks.
- Efforts to recover stolen funds are underway.
Permissionless money market protocol OpenLeverage has “made the tough decision” to discontinue some of its services after losing thousands of dollars to multiple hacks, the project said on Monday.
Founded in 2021, OpenLeverage brands itself as an evolving and expanding network of decentralized finance (DeFi) with over 100 integrations across 614 markets. The protocol reportedly has 38,600 users with $1 billion traded since it was founded.
OpenLeverage Suffers Multiple Attacks
On April 1, blockchain security firm Cyvers shared a post on X (Twitter), alerting users to an attack on OpenLeverage. Per the alert, the hack began with a malicious contract deployment 13 seconds earlier than the attack transactions, leading to a total loss of $230,000.
Blockchain security firm PeckShield also highlighted the development, estimating the total loss at $236,000.
Moments after reports by the two blockchain security firms, the OpenLeverage team confirmed the exploit, noting that the “insurance and buyback funds should be able to cover the loss,” the team reiterated that its D1 was not affected and promised to share more details following investigations.
Update After the Hack
In a long post shared later, OpenLeverage confirmed that the exploit led to a total loss of $220,000 on the BNB chain and $20,000 on Arbitrum. While the protocol insisted that user funds would be refunded, it announced the shutdown of its services until “early next week.”
“In light of this, we've made the tough decision to discontinue the OpenLeverage trading and lending protocol. We're initiating processes for users to close trades/borrowings & withdraw funds safely,” OpenLeverage wrote.
Per the update, the protocol is keen on offering the hacker a bounty in exchange for the return of stolen funds, after which the “trace and legal process will start immediately.”
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