Team Finance, which was attacked by a malicious hacker, lost $15.8 million.
Team Finance is a DeFi platform that helps other projects lock in their liquidity. This is done to reduce the risk of fraud, known as “rug pulling,” where a project’s liquidity is withdrawn, causing the token value to drop.
Multiple Projects on Team Finance Affected by Hacker’s Attack
According to PeckShield, today’s attacker targeted liquidity tokens under the custody of Team Finance. The attack affected four projects: CAW (A Hunters Dream), Dejitaru Tsuka, Kondux, and Feg. CAW was the most affected project, with the attacker receiving $11.5 million worth of liquidity tokens.
The DeFi liquidity locker confirmed the event, stating that the attacker exploited the moderating version 2 to version 3 migration functionality.
PeckShield noted that the flaw in the transition functionality allows the attacker to manipulate the price of liquidity tokens as they transition from v2 to v3. This price distortion allowed the attacker to make a substantial profit after the migration was complete.
Team Finance had this to say about the incident:
“We have temporarily suspended all team finance activities until we are sure that this vulnerability has been fixed. No funds currently on Team Finance are more at risk from this gap.”
PeckShield is 1.76 for the attacker to initiate the attack. Ethereum He stated that he used it ($ 2,700). The attacker’s wallet address still holds the proceeds from the deficit, including $6.43 million and 880 ETH ($1.36 million) in the DAI stablecoin.
Team Finance also urged the attacker to get in touch to set up a reward payout. Such regulations have become commonplace in the DeFi space after recent high-profile hacks and vulnerabilities.
Team Finance joined a number of DeFi protocols that suffered from malicious attacks in October, and the month was a record-breaking month for crypto security events.
*Not investment advice.
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