DFX Finance (DFX), a decentralized finance (DeFi) protocol, came to the fore with a hack attack. In the said attack, $4.3 million was stolen. Also, the platform’s altcoin project suffered a decline. Here are the details…
DFX Finance has been hacked
DFX Finance, the protocol that provides a decentralized exchange service for fiat-pegged stablecoins, has reported that it has been hacked. According to security researchers’ estimates, an anonymous attacker first stole $7.5 million from DFX. The DFX Finance team has acknowledged the vulnerability. He said he paused all his smart contracts to get the problem under control. He stated that they became aware of the attack within 20-30 minutes.
The incident appears to have taken place with a flash loan attack that allowed the hacker to withdraw money from DFX. Flash loan is a feature where large amounts of cryptocurrencies can be borrowed unsecured only if these funds are returned in the same transaction. Of the stolen assets, the hacker transferred 2,963 ETH ($3.8 million) and about $500,000 in stablecoins. In other words, he transferred $4.3 million in assets to his wallet.
Altcoin price crashes
The attacker borrowed stablecoins from DFX Finance during the attack. It then deposited them back into DFX’s liquidity pools with a “callback function” that bypassed flash credit checks. With the attack, DFX’s liquidity pool tokens were disposed of via multiple flash credits. Flash loans are intended for arbitrage trading and increasing capital efficiency. However, hackers regularly abused them to exploit certain vulnerabilities. DFX Finance raised $5 million in a funding round led by Polychain Capital and True Ventures.
Meanwhile, DFX Finance’s DFX token fell 32.4 percent to $0.17. The cryptocurrency was changing hands at $0.29 before the news of the hack. It fell as low as $0.155 on a daily basis. Now it is trading at $0.173.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Risk Disclosure: The articles and articles on Kriptokoin.com do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your own research and due diligence before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Disclaimer: Advertisements on Kriptokoin.com are carried out through third-party advertising channels. In addition, Kriptokoin.com also includes sponsored articles and press releases on its site. For this reason, advertising links directed from Kriptokoin.com are on the site completely independent of Kriptokoin.com’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on Kriptokoin.com and the pages directed by the links in the sponsored articles do not bind Kriptokoin.com in any way.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.