Pike Finance Suffers Second Hack in Three Days, Losing $1.68 Million in Digital Assets
Summary:
Pike Finance, a DeFi lending platform, experienced its second exploit in three days, leading to a loss of $1.68 million in digital assets across the Ethereum, Arbitrum, and Optimism chains. The hackers exploited a vulnerability in the platform's smart contract, enabling them to withdraw significant amounts of Ether, Optimism tokens, and Arbitrum coins. Pike Finance is offering a 20% reward for information leading to the recovery of the funds.
The DeFi lending platform, Pike Finance, has been compromised, with hackers making away with $1.68 million in digital assets. This is the second time the protocol has fallen prey to malicious actors within a three-day span.
The breach took place across three chains - Ethereum, Arbitrum, and Optimism, on the 30th of April, as reported by CertiK, an on-chain analytics firm, to Cointelegraph. The perpetrator exploited a loophole within Pike Finance's smart contract, altering the output address and siphoning over $1.4 million in Ether (ETH), alongside $150,000 in Optimism tokens, and over $100,000 in Arbitrum coins.
Prior to this, on the 26th of April, Pike Finance experienced a loss of $300,000 due to similar exploit. As per an analysis by Etherscan, the breaches traced back to the same lacuna present in the smart contract, empowering the attacker to override it.
In a post dated May 1, Pike Finance explained the exploit stating, "The discrepancy caused the contract to respond as though it hadn’t been initialized since the *initialized* variable couldn't be accessed. Consequently, intruders were able to upgrade the subcontracts without requiring admin access, enabling them to pull out funds."
Pike Finance has initiated a reward scheme, offering 20% of the stolen funds to anyone providing information leading to the recovery of the same. The protocol's investigation into the breach is still ongoing.
Related: EigenLayer handles more than 12,000 pending withdrawals — How much will the TVL drop?
We'll keep updating this space as more details unfurl about this ongoing investigation.
Published At
5/1/2024 1:02:29 PM
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