On June 10, Arkham Intelligence analysts warned of a possible hack of the UwU Lend DeFi liquidity protocol. Preliminary damage was estimated at $19.3 million.
ALERT: Possible exploit on Uwulend🚨🚨
$19.3M removed so far.
Address:https://t.co/mDU0WTbE7S pic.twitter.com/Bx7cLbkrqE
— Arkham (@ArkhamIntel) June 10, 2024
According to Cyvers Alerts researchers, the hacker withdrew funds in three transactions and has already begun converting assets into ETH.
🚨ALERT🚨Our system has detected a series of suspicious transactions involving @UwU_Lend!
Attacker has executed 3 transactions and was able to get around $19.5M. But hack is still ongoing! Amount might increase. Right now attacker is swapping stolen digital assets to $ETH.… https://t.co/8cAB2NWwKV pic.twitter.com/V2RrqYagD2
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) June 10, 2024
Two days before the incident, he interacted with the Tornado Cash mixer to finance the hack. At the same time, the Cyvers analysis system detected the deployment of a malicious contract before the funds were moved.
Representatives of UwU Lend responded to the warnings approximately two hours after the attack began and announced the suspension of the protocol.
The protocol was paused a little under an hour ago while the team investigates the situation. Please rest assured that we were made aware of the situation immediately and are taking all necessary steps, doing our best here. Stay tuned for further updates.
— UwU Lend (@UwU_Lend) June 10, 2024
By data journalist Colin Wu, UwU Lend was launched by the co-founder of the closed crypto exchange QuadrigaCX Michael Patrin, known under the pseudonym 0xSifu.
The project is a fork of Aave and supports lending in the algorithmic stablecoin MIM.
At the beginning of the summer, the decentralized exchange Velocore came under attack. The hacker withdrew approximately $6.8 million in Ethereum from the pools on the Linea and zkSyncEra L2 networks.
In May, the Japanese crypto exchange DMM Bitcoin lost $305 million during a hack. The platform intends to attract financial support to compensate users.
Source: Cryptocurrency
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