These 7 DeFi Altcoins Have Been Hacked: Tens of Millions Stolen! – Cryptokoin.com

DeFi altcoin projects lost more than $21 million to hackers during the month of February, according to data released by DefiLlama.

DeFi altcoin project hacks in February

Reentrancy, ‘price oracle’ attacks and exploits across seven protocols have caused the decentralized finance (DeFi) space to lose at least $21 million in cryptocurrencies in February. According to DeFi data analytics platform DefiLlama, one of the biggest of the month was the ‘flash loan reentrancy’ attack against Platypus Finance, which resulted in $8.5 million in lost funds. DefiLlama highlighted six more notable hacks over the month, the first being the ‘price oracle’ attack on BonqDAO on Feb.

Seven attacks on DeFi altcoin projects / Source: DefiLlama

BonqDAO: $1.7 million

On February 1, BonqDAO announced to its followers that the Bonq protocol was subject to an oracle attack that allowed the attacker to manipulate the price of the AllianceBlock (ALBT) token. The hacker increased the price of ALBT and printed large quantities of Bonq Euros (BEUR). BEUR was later exchanged for other tokens on Uniswap. Then, the price dropped to almost zero, which triggered the liquidation of ALBT. Blockchain security firm PeckShield estimates losses at around $120 million. However, it was later reported that the hackers only cashed out about $1 million due to the lack of liquidity in BonqDAO.

Orion Protocol: $3 million

Just one day later, on February 2, decentralized exchange Orion Protocol suffered nearly $3 million damage from a reentrancy attack in which attackers used a malicious smart contract to withdraw funds from a target with repeated withdrawal orders.

Orion Protocol CEO Alexey Koloskov at the time confirmed the attack, reassuring everyone that “All users’ funds are safe and secure.” “We have reason to believe that the problem is not the result of any shortcoming in our core protocol code,” Koloskov said. Rather, it may have been caused by a vulnerability in mixing third-party libraries in one of the smart contracts used by our experimental and private brokers.”

DForce Network: $3.65 million

DeFi altcoin project dForce Network was the victim of a reentrancy attack in February that resulted in losses of approximately $3.65 million. In a February 10 post, dForce confirmed the exploit. However, all the money was returned when the attacker came forward as a white hat hacker.

“On February 13, 2023, the stolen funds were fully refunded to our wallets on both Arbitrum and Optimism, which is the perfect ending for everyone,” dForce said.

Platypus Finance: $9.1 million

cryptocoin.comAs you followed on February 16, DeFi protocol Platypus Finance suffered a flash loan attack that resulted in the withdrawal of $8.5 million from the protocol. The autopsy report from platypus inspector Omniscia noted that the attack was possible because of the code in the wrong order. On February 23, the team announced that they are trying to return about 78% of the main pool funds by re-printing frozen stablecoins.

The team also confirmed the second and third events, which led to another $667,000 misappropriation, bringing the total loss to about $9.1 million. French police arrested two suspects related to the attack and confiscated approximately $222,000 worth of crypto assets on February 25.

Hope Finance: $1.86 million

A few days later, on February 20, users of the Arbitrum-based algorithmic stablecoin project Hope Finance fell victim to a smart contract exploit that stole nearly $2 million from users.

Web3 security firm CertiK flagged the event on February 21, following an announcement on its Hope Finance Twitter account notifying users of the scam. A member of the CertiK team said that the scammer changed the details of the smart contract, which led to the withdrawal of funds from the Hope Finance formation protocol:

Dexible: $2 million

The multi-chain exchange aggregator Dexible attacker exploited a vulnerability targeting the app’s selfSwap functionality. The DeFi altcoin project lost $2 million worth of cryptocurrencies due to the February 17 attack. According to a February 18 post from the exchange, “a hacker exploited a vulnerability in our newest smart contract. This allowed the hacker to steal funds from any wallet with confirmation of unspent spending in the contract,” he said.

After investigating, the Dexible team found that the attacker used the app’s selfSwap function to move over $2 million in cryptocurrencies from users who had previously authorized the app to migrate their tokens. After getting the tokens into his own smart contract, the attacker withdrew the tokens to unknown BNB wallets via Tornado Cash.

LaunchZone: $700,000

BNB Chain-based DeFi altcoin project LaunchZone drained $700,000 worth of funds on Feb. According to blockchain security firm Immunefi, an attacker exploited an unverified contract to drain funds. “The unconfirmed contract was approved 473 days ago by the LaunchZone deployer,” Immunefi said. According to DefiLlama figures, February figures indicate a large increase compared to January. The tracker lists only $740,000 per month of attacks against DeFi platforms across two protocols (Midas Capital and Roe Finance).

Blockchain data firm Chainalysis revealed in its 2023 Crypto Crime Report that hackers stole $3.1 billion from DeFi altcoin projects in 2022, accounting for more than 82% of the total amount stolen this year.

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