Etherum-Based Saddle Finance Loses $10 Mln In Flash Loan Attack

By Ashish Kumar
April 30, 2022 Updated April 30, 2022
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Ethereum-based DeFi protocol Saddle Finance lost about $10 million in a flash loan attack on Saturday, data from blockchain security firm Peck Shield showed.

Decentralized Finance (DeFi) popularity and flash loans attack on it are directly proportional to each other. As DeFi platforms have gained traction in the past few years, the hacks around it have also increased in numbers.

$3.8 million worth of stolen funds secured

It is being reported that the total profit of the Flashloan attack was around $10.2 million. The wallet address involved in the hack shows multiple transactions. The transaction shows that around $2.9 million USDC was swapped for sUSD. While $318k and $343K worth of DAI and USDT were swapped on Curve finance, respectively. In addition, $1.6 million USDC was swapped for 557 Ethereum (ETH).

Saddle Finance responded to the attack and informed that their team is investigating the exploit. They have discovered that the problem lies with an exploit in sUSD. Till further notice Saddle has paused the metapools. While single asset withdrawals are restricted however the balanced pool withdrawals are still live.

Earlier, Saddle Finance mentioned that white hat hackers were able to secure around $3.8 million of the stolen fund. They are in the process of getting the return.

Flash loan attacks are on rising

Flash loan attacks are some of the most repeated kinds of that DeFi platform witnesses. These attacks are considered the cheapest to pull off as it is like a very quick pump and dump scheme. Recently, the unknown hackers managed to steal around $180 million worth of digital assets from a DeFi project, Beanstalk Farm.

It is reported that this attack was the 4th largest exploit to involve a flash attack. The stolen fund was taken out from the protocol in the form of Ethereum (ETH), BEAN stablecoin and other assets. Peckshield informed that the attackers took some $80 million from the project while reaming fund was used to pay various fees of the exchanges and loan services.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]
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