Unsecured cryptocurrency Sentiment, a decentralized lending platform that allows lending and borrowing, is worth more than $500,000. USD Coin (USDC) has lost.
The attack took place today and involved a group of transactions that pulled funds from the Sentiment protocol on the Arbitrum layer 2 scaling solution.
Hacker Launches “Reentrance” Attack
According to blockchain data, the hacker exploited a vulnerability in Synapse Bridge, a smart contract that connects Sentiment to Arbitrum. The hacker was able to repeatedly withdraw USDC from the bridge without paying back the borrowed money, resulting in a reentrancy attack.
The hacker transferred 536,738 USDC to his own wallet tagged as “Sentimentxyz Exploiter” by Arbiscan.
The Sentiment team confirmed the incident on Twitter and said they are actively investigating the situation. They advised users to stop using the protocol until further notice. They also said they are working with Arbitrum and other partners to reduce damage and prevent further attacks.
Sentiment is one of the first projects to use Arbitrum, a layer 2 solution on Ethereum that aims to increase scalability and reduce fees.
The Sentiment attack raised questions about the security and reliability of layer 2 solutions and their integration with other protocols.
Arbitrum is an Ethereum layer-two (L2) scaling solution. It uses optimistic rollups to achieve its goal of increasing speed, scalability, and cost efficiency on Ethereum. Arbitrum takes advantage of Ethereum’s security and compatibility. Another advantage is higher throughput and lower fees compared to Ethereum.
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price tracking right now by downloading our apps!