- Sturdy Finance alerts the community about the $800k hack and affirms that no other funds were compromised.
- The decentralized finance protocol is the latest firm hacked in the growing number of cases in the DeFi space.
- The hacker reportedly exploited the vulnerability in the protocol and controlled a faulty price oracle.
Sturdy Finance has announced that it has paused all markets following the $800,000 exploit on its platform.
On June 12, the lending platform, Sturdy Finance, confirmed that it was the latest victim of a DeFi attack, and it had lost 442 ETH in the process to the exploiter.
According to the blockchain security firm, PeckShield, who reported the incident to Sturdy Finance, there was an issue connected to the price manipulation. The hacker had reportedly drained the DeFi protocol of 442.6 ETH and moved the assets to Tornado Cash.
Sturdy Finance responded to the tweet an hour later, alerting its users that it was aware of the exploit and has since taken specific measures to protect the users’ funds. Sturdy stated that no other firms on the Protocol were affected.
“All markets have been paused, and no additional funds are at risk,” the DeFi protocol affirmed.
BlockSec also weighed in on the recent exploit in a thread on Twitter; the blockchain security firm explained how the hacker could make away with nearly $800,000 worth of crypto assets. In its Twitter thread, BlockSec blamed the root cause of the exploit being the regular Balancer’s read-only reentrancy while the exploiter manipulated the price.
Crypto Exploits in 2023
It has only been halfway through 2023, and several reports of crypto firms being hacked, with digital assets worth millions of dollars lost to cyber criminals, these hacks have made the headlines of crypto media outlets.
Jimbos Protocol
On May 28, Jimbos Protocol, a Decentralised Finance (DeFi) Protocol, suffered a loss of $7.5 million worth of digital assets to hackers.
According to PeckShield—the security company which raised the alert—the attackers had reportedly gained access to the Protocol and stolen over 4,090 ETH. In the information provided, there was a slippage of control of liquidity because of the change in operations.
BonqDAO
The attack on BonqDAO is one of the biggest hacks in the crypto space in 2023. The DAO alerted the crypto community that it had been a victim of hackers and had lost $120 million.
The notice on February 1 revealed that the cause of BonqDAO’s loss was an oracle hack whereby the attackers increased the price of ALBT and minted large amounts of BEUR.
Euler Finance
The attack on Euler Finance was one of the biggest hacks in 2023, as the firm lost over $195 million to hackers.
On March 13, it was announced that the hacker could use flash loans in deposit funds and leverage them twice to spark the liquidation logic.
Slowmist, a security firm, further provided factors that contributed to the exploitation of Euler Finance.
Conclusion
The DeFi community has witnessed several hacks so far in the year 2023. Fortunately, few were reported to affect or damage the users’ funds. Sturdy Finance is the latest DeFi protocol to have lost nearly a million dollars worth of assets to hackers.
