Lending protocol Lendf.me saw some $25 million in ether (ETH) and bitcoin (BTC) exit its wallets late Saturday and early Sunday after its money market pool was attacked. Lendf is one of two protocols supported by the dForce Foundation.
This is really sad news as hacking in these times is the last thing they needed, and I don’t think they’ll ever recover their lost funds and now I’m just hoping that they find a way to survive in these testing times. Further it’s been claimed that this hack was possible because of a bug that they failed to fix, and it’s really sad that they didn’t take better precautions to protect their funds.
Initial investigations carried out by several DeFi and Ethereum (ETH) experts show that this hack may have been caused by a vulnerability of imBTC-ETH interaction, which is required for lending protocols. imBTC is one of the Bitcoin-pegged assets designed in accordance with the ERC-777 standard. This bug made for a number of DeFi attacks possible, including a recent Uniswap hack.
Too Many Red Flags
dForce has already been accused in plagiarizing code for one of the industry-level protocols, Compound. This fact is among the 'red flags' of today's victim Kain Warwick, Synthetix's Founder.
Sources:
https://www.coindesk.com/attacker-drains-decentralized-protocol-dforce-of-25m-in-weekend-attackhttps://u.today/dforce-defi-protocol-hacked-25m-in-bitcoin-btc-and-ethereum-eth-stolen