The hacker who stole $7.4 million from decentralized finance (DeFi) protocol Hundred Finance has started moving cryptocurrency assets after a year of inactivity.
The hacker moved about $800,000 worth of Ether (ETH) and Tether (USDT) from Curve’s decentralized exchange (DEX) on May 1 after providing liquidity to the platform over a year ago.
After withdrawing the funds, the hackers converted USDT and other cryptocurrencies to ETH. This increased the exploiter’s ETH by over $1 million.
The hacker currently holds a total of $4.3 million in assets in the wallet, including various crypto assets such as Dai (DAI), Wrapped Ether, Frax, and Wrapped Bitcoin.
On April 15, 2023, the DeFi protocol reported that it had suffered a security breach in its layer 2 network Optimism.
According to blockchain security company CertiK, attackers manipulated the exchange rate between ERC-20 tokens and hTOKENS. This allowed more tokens to be withdrawn than deposited.
This is commonly known as a flash loan attack in the DeFi world. This type of attack vector typically involves borrowing large amounts of funds through some form of unsecured loan from a lending platform.
Attackers then use those assets to manipulate cryptocurrency prices on DeFi platforms. The Hundred Finance hack resulted in large loans being made at falsified exchange rates.
In 2022, Hundred Finance was also attacked by Gnosis Chain. The re-entrancy attack drained the protocol’s liquidity, resulting in a loss of $6 million.
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While flash loan attacks have wreaked havoc on the sector over the past few years, April 2024 shows a significant decline in losses from this type of hacking.
According to CertiK’s report, flash loan attacks resulted in losses of just $129,000 in April. The largest single incident this month caused only $55,000 in damage. This is the lowest amount lost from a flash loan attack since February 2022, CertiK said in a report.
Meanwhile, overall losses from cryptocurrency hacks also decreased in April. Security company PeckShield reported this month that just $60 million was lost in hacks. This represents a sharp decline compared to February and March, when the company recorded losses of $360 million and $187 million, respectively.
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