Breaking: DAO Maker Becomes Latest Defi Hack Victim, 10,000 USDC Accounts Affected

By Prashant Jha
Published August 12, 2021 Updated August 12, 2021
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Breaking: DAO Maker Becomes Latest Defi Hack Victim, 10,000 USDC Accounts Affected

By Prashant Jha
Published August 12, 2021 Updated August 12, 2021

The number of Defi protocols getting hacked continues to increase as another protocol fell prey to the attack. Dao Maker, a crowdfunding platform was hacked and hackers managed to steal USDC from user’s top-up accounts and were replaced by ETH. A total of 2,261 Eth, worth more than $7 million were used to transfer out USDC, as per a report from WuBlockchain.

The reason to transfer ETH for USDC is believed to be associated with freezing of assets as USDC can be frozen by Circle from a specified account. Recently, Tether froze nearly $35 million worth of USDT from the PolyNetwork hack, the largest defi hack.

According to one estimate, 9,000 to 10,000 USDC accounts on DAO Maker could have been affected by the hack.

Source: Etherscan

DAO Maker users started reporting missing of their pre-funding deposits, as it was stolen by the hackers. The affected platform has not made any official comments yet.

Defi Ecosystem’s Security Under Scanner

Defi has grown to become a renowned crypto use case, so much so that mainstream investors and institutional giants such as JP Morgan and Goldman Sachs have shown interest in it. However, the security vulnerabilities have been a major drawback in the ecosystem as evident from a series of hacks in just two days.

First PolyNetwork became the victim of the largest defi hack in crypto history yesterday resulting in $610 million fund theft. The hacker behind the attack later agreed to return the funds and has already returned over $250 million. Today’s hack of nearly $7 million in USDC adds to the growing list of Defi attacks with each passing day.

There hasn’t been a single month when a Defi network has not been compromised, the security flaws seem to be internal on most occasions, as hackers managed to alter codes to find loopholes in these protocols and exploit millions.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Prashant Jha
1179 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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