PackShield Reveals Deus Finance Lost $13.4 Million To Hackers

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Deus Finance, a decentralized finance application, has been the latest protocol to suffer a hack. Blockchain security firm PeckShield revealed the exploit, noting that the hacker(s) stole $13.4 million from the Fantom integration of the multi-chain protocol. 

Deus Finance suffers second hack in two months 

In a thread on Twitter, PeckShield explained how the exploit was carried out. The hacker used a flash loan-assisted manipulation to alter the prices of Dues’ two native dollar-pegged stablecoin token DEI.

The price oracle of the protocols USDC/DEI pair pool was compromised, allowing the hacker to use the manipulated price of the token as collateral to borrow from and drain the pool. 

The hacker’s original funding for the loan, approximately 800 ETH, was transferred from Tornado Cash and tunneled to a Fantom wallet address through Multichain. Following the successful hack, the funds have been tunneled back to an Ethereum wallet address. 

While the hacker’s profit amounted to $13.4 million, PeckShield warns that Deus’ losses may be even more. Deus Finance, meanwhile, suffered a very similar hack in March where the hacker stole $3million. 

 

Following the latest hack, DEUS, the governance token of the protocol, saw a price drop. The token is down around 7.35% in the last 24 hours, trading at $564 per data from CryptoRank.  

Hacks raise questions about the security of crypto platforms recorded

The credibility and security of blockchain technology continue to be put in doubt due to rampant hacks. So far in 2022, malicious actors have stolen over $1.5 billion from blockchain-based platforms according to data from SlowMist

Of the around 100 reported hack events the platform recorded this year, the Axie Infinity Ronin network $625 million hack was the biggest to date. The exploit also takes the record for the highest loss in the industry’s history. 

While comfort is not very common for investors who lose their assets in such exploits, Sky Mavis, the parent company of the play-to-earn protocol has promised to refund all users that suffered losses. 

Olivia’s interests spans across the Cryptocurrency and NFT and DeFi industry. She remains as fascinated by cryptocurrencies today, as she was back in 2017, when she first started reading up about them. She’s actively on the lookout for the latest Crypto related stories. When she’s not writing, she’s catering to her pet chihuahua, or curating vegan recipes. Reach me at [email protected]
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.

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