Hacker Pilfers $181K from DeFi Platform Yield Protocol; Q1 2024 Cybernetic Losses Decline 23%
Summary:
An unidentified hacker exploited smart contracts of the discontinued DeFi lending platform, Yield Protocol, stealing around $181,000 in cryptocurrency assets. Despite Yield Protocol's closure in December 2023, and repeated urging for investors to close their positions and settle outstanding debts, the misalignment between the pool token balance and total supply was exploited via flash-loaned assets. Considering Yield Protocol ceased offering support in February, retrieving the stolen funds appears unlikely. A recent report from Immunefi indicates a 23% drop in losses due to cyber breaches and fraud schemes in Q1 2024 compared to 2023.
A cybernautical intruder successfully siphoned off funds leveraging the smart contracts of a now-defunct decentralized finance (DeFi) lending platform, Yield Protocol. Yield Protocol ceased operations in December 2023, attributing its closure to dwindling business interest and increasing international regulatory scrutiny. Post its dissolution, the Yield Protocol repeatedly urged its investors to shut down their positions, redeem their capital and settle any outstanding debts. Ignoring these advisories, an unidentified digital marauder absconded with roughly $181,000 in cryptocurrency assets from the strategic contracts of Yield, located on the Arbitrum blockchain. The cybertheft was initially reported by blockchain analytics firm PeckShield, with CertiK later corroborating the event.
Drawing from their investigation, CertiK pointed out: "The insidious actor took advantage of a misalignment between the pool token balance and total supply, promptly making use of flash-loaned assets and subsequently withdrew extra pool tokens.”
Yield Protocol ceased providing official support on February 2. Despite its previous rebounding tendencies, the prospects of recouping the leveraged funds appear slim. In March 2023, Yield Protocol, along with ten other DeFi protocols, incurred losses following the assault on the non-custodial lending platform Euler Finance. However, by July 2023, Yield Protocol had fully bounced back from the Euler flash loan attack.
At that time, Yield Protocol cooperated with Euler to refund the pilfered funds. This collaborative effort involved the launch of 26 fresh contracts and implementing approximately 300 authorized calls to reestablish fixed-yield token maturity dates and restore protocol operations.
In relation: The Lazarus Group has allegedly laundered above $200M in misappropriated crypto since 2020.
A recently published report by blockchain safeguard firm Immunefi disclosed a 23% contraction in losses due to cyber breaches and fraudulent schemes in Q1 2024 as opposed to 2023's figures. The report suggests that in the first quarter of 2024, losses from cyberhacks and fraudulent acts amounted to almost $336.3 million, a significant reduction from the previous year's loss of $437.5 million during the same period.
Crypto losses due to hacks, scams, and fraudulent activities in Q1 of 2024. Source: Immunefi
The report noted 46 instances of hacking and 15 suspected fraudulent activities. The cross-chain bridging protocol, Orbit Bridge, was hit the hardest with losses amounting to $81.7 million.
Recent magazine publication: 68% of Runes are depreciating in value — Is this really an improvement over Bitcoin?
Published At
4/30/2024 12:37:04 PM
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