Hacker Mobilizes $7.4M Stolen from Hundred Finance; Crypto Attacks Show Decline in April 2024
Summary:
The hacker, who stole $7.4 million from the Decentralized Finance (DeFi) protocol, Hundred Finance, has started to transfer the stolen cryptocurrency after a year of inactivity. The digital wallet belonging to the perpetrator now totals assets worth $4.3 million in various cryptocurrencies. Hundred Finance had suffered a security breach in 2023 and another exploit in 2022, the latter resulting in a $6 million loss. However, losses from flash loan attacks and general crypto hacking incidents have markedly decreased in April 2024, according to reports by blockchain security company, CertiK and crypto security firm PeckShield.
The cybercriminal responsible for pilfering $7.4 million from the decentralized finance (DeFi) application, Hundred Finance, has begun to mobilize the stolen cryptocurrency following a 12-month period of dormancy. On the first day of May, the perpetrator relocated approximately $800,000 worth of Ether (ETH) and Tether (USDT) from Curve's decentralized exchange (DEX) where it had been stored as liquidity for over a year. The conversion of USDT and other digital assets into ETH by the hacker subsequently escalated the offender's ETH possession by more than $1 million. The criminal's digital wallet now contains a total value of $4.3 million, including cryptocurrencies such as Dai, Wrapped Ether, Frax, and Wrapped Bitcoin.
On April 15, 2023, Hundred Finance announced it had fallen victim to a security violation on the layer-2 network, Optimism. CertiK, a blockchain security company, stated that the assailant exploited the exchange rate between ERC-20 tokens and hTOKENS, enabling them to extract more tokens than originally invested. Flash loan attacks, as they are referred to in the DeFi scene, involve the unsecured borrowing of large amounts of money from lending platforms. The borrower then leverages these assets to artificially adjust the value of digital currencies on DeFi platforms. In the Hundred Finance debacle, substantial loans were obtained by falsifying the exchange rate.
In 2022, Hundred Finance was affected by another exploitation, this time on the Gnosis Chain, leading to the disappearance of the platform's liquidity via a reentrancy attack and a consequent $6 million damage.
Flash loan attacks, despite causing substantial turmoil in the digital finance sector in recent past, declined remarkably in April 2024, translating into notably fewer losses arising from such incidents. CertiK's assessment shows that such attacks led to a mere loss of $129,000 in April, with the most significant single event incurring a loss of just $55,000. According to the report, this represents the lowest loss from flash loan attacks since February 2022.
Moreover, April also saw a decrease in general losses due to crypto attacks. PeckShield, a security firm, reported that the total losses due to hacks in the month stood at a modest $60 million. This marks a considerable dip compared to the losses of $360 million and $187 million reported in the preceding two months of February and March.
Published At
5/2/2024 2:01:16 PM
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