Major DeFi Hack: Sturdy Finance Loses $800K in ETH

Major DeFi Hack: Sturdy Finance Loses $800K in ETH
Sturdy Finance, a decentralized finance (DeFi) protocol, has suffered a security breach resulting in the loss of 442 Ether (ETH), equivalent to nearly $800,000 at the time of writing. The incident occurred when an attacker took advantage of a vulnerability within the system, manipulating a flawed price oracle and subsequently draining funds from the protocol.

On June 12, PeckShield, a blockchain security firm, notified Sturdy Finance about a suspicious transaction linked to potential price manipulation. The DeFi protocol promptly responded by temporarily halting all its markets and assuring users that no additional funds were at risk.

Despite the swift action taken by the lending platform, PeckShield confirmed that the attacker managed to transfer approximately $800,000 worth of ETH to the crypto mixer Tornado Cash. The security firm identified the root cause of the exploit as a faulty price oracle.

BlockSec, another blockchain security company, shed light on the attack method used by the hackers, known as a reentrancy attack. This method involves exploiting the ability to repeatedly call a function within a single transaction before the initial function call concludes, allowing the hackers to withdraw more funds than should be possible.

In a separate incident, scammers seized control of eight Twitter accounts belonging to prominent members of the crypto community, using them to promote fraudulent cryptocurrency schemes. Notable individuals targeted included DJ Steve Aoki, Cole Villemain (the founder of Pudgy Penguins), and even crypto skeptic Peter Schiff. According to blockchain detective ZachXBT, these scammers have managed to pilfer nearly $1 million in cryptocurrency.

In an unrelated development, the United States Justice Department has pressed charges against two individuals allegedly involved in the Mt. Gox hack. Alexey Bilyuchenko, 43, and Aleksandr Verner, 29, stand accused of stealing and conspiring to launder 647,000 Bitcoin. The Mt. Gox incident, which occurred several years ago, remains one of the most notorious hacks in the cryptocurrency industry's history.

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