- Multiple decentralized finance (DeFi) protocols were hacked in January 2024, resulting in over $38 million in losses. Affected protocols include Radiant Capital, Gamma Strategies, Wise Lending, Socket, and Goledo Finance.
- The hacks primarily involved flash loan attacks that exploited code vulnerabilities. The affected protocols halted operations to fix issues and recover funds.
- The growth of DeFi has led to serious security risks and hacks that put user funds at risk. The January 2024 hacks highlight the need for better security practices in DeFi.
Decentralized finance (DeFi) suffered major losses in January 2024 due to exploits and hacks. Quantstamp, a DeFi security startup, identified the top 5 protocols affected, with total losses reaching $38.9 million.
Radiant Capital Loses $4.5 Million
Radiant Capital faced a flash loan attack in early January resulting in $4.5 million in losses. The issue was caused by a known rounding error in Compound/Aave code. Radiant halted its USD Coin pool on Arbitrum to fix the problem and ensure user funds were secure.
Gamma Strategies Loses $6.1 Million
Hours after the Radiant attack, Gamma Strategies was hit by a flash loan attack on January 4. A code bug allowed hackers to siphon $6.1 million from Gamma’s vaults. Deposits were temporarily halted while Gamma fixed the vulnerability.
Wise Lending Drained of $460,000
On January 12, Wise Lending lost at least $460,000 in a flash loan attack. Hackers manipulated the price oracle used by Wise Lending, marking the 2nd attack in 6 months. The lending app lost 170 Ether in the breach.
Socket Loses $4 Million But Recovers Some Funds
A vulnerability in user verification allowed hackers to steal nearly 2,000 ETH ($4 million) from Socket on January 16th. However, Socket was able to recover 1,032 ETH and reimbursed affected users.
Goledo Finance Loses $1.7 Million
Goledo Finance experienced a breach similar to Gamma’s on January 28 – a flash loan attack that drained $1.7 million. Negotiations with the hacker are ongoing. Goledo froze the hacker’s exchange accounts and involved law enforcement.
Conclusion
January 2024 saw several major DeFi hacks and exploits totaling nearly $40 million in losses. Protocols like Radiant, Gamma, Wise Lending, Socket, and Goledo were forced to halt operations and recover funds. The growth of DeFi has been accompanied by serious security risks that continue to put user funds in jeopardy.
