Topic: DeFi hacks [history] (Read 19523 times)

^ No wonder.
The bigger the space and FOMO around it, the more newbies come, and the more the possibilities for the scammers to get a quick buck out of them.
And let's not forget the situations where even the big entities get robbed of their funds.

https://x.com/PeckShieldAlert/status/1877258501623525797
"PeckShieldAlert 2024 has witnessed a significant resurgence in crypto-related hacking activities. The total value of loss in 2024 has exceeded $3.01B, reflecting a ~15% increase over the $2.61B stolen in 2023.
This total includes $2.15B stolen from crypto hacks and $834.5M stolen from scams. Notably, ~$488.5M worth of stolen cryptos has been recovered."

You're right that the DeFi sector will be regulated by law, and all the big players will be forced to comply.
I wrote about it in this thread
https://bitcointalksearch.org/topic/us-irs-finalizes-controversial-tax-rule-requiring-defi-brokers-to-collect-user-5524994

_____
Chainalysis analytics

https://x.com/chainalysis/status/1869730169147232422
"North Korean hackers stole more from crypto platforms than ever before: $1.34 billion, which represents 61% of the total amount stolen for the year."

https://www.halborn.com/blog/post/explained-the-pike-finance-hack-april-2024
In 30 April 2024, Pike Finance suffered a series of two hacks exploiting vulnerabilities related to the project’s smart contracts. The attackers stole $300,000 and about $1.6 million for a total of approximately $1.9 million.

https://www.coindesk.com/business/2024/05/15/bitcoin-defi-tool-alex-lab-loses-43m-in-hack-offers-10-bounty-for-stolen-funds
Bitcoin DeFi Tool Alex Lab Loses $4.3M in Hack, Offers 10% Bounty for Stolen Funds

https://www.halborn.com/blog/post/explained-the-sonne-finance-hack-may-2024
In 24 May 2024, Sonne Finance suffered a hack in which the attacker was able to drain an estimated $20 million from the protocol’s lending pools. The attacker took advantage of a known issue with forks of Compound Finance v2.

https://www.theblock.co/post/295520/gala-games-hacked-gala-token-plummets
Web3 gaming platform Gala Games loses over $200 million in potential exploit, GALA plummets 15%

https://beincrypto.com/velocore-decentralized-exchange-10-million-hack/
Decentralized Exchange Velocore Suffers $10 Million Hack: Reports

https://cointelegraph.com/news/uwu-lend-hack-20-million
UwU Lend hit by $20M crypto hack
The ongoing exploit has already netted the attacker nearly $20 million in digital assets.

https://www.theblock.co/post/299901/uwu-lend-second-hack-this-week
UwU Lend drained for $3.7 million in second exploit this week

https://cointelegraph.com/news/lifi-protocol-attack-8m-drained
Li​.Fi protocol attacked, $10M drained
The Li.Fi protocol experienced a security breach when hackers exploited a specific contract address, resulting in the loss of over $8 million in cryptocurrencies. The attack has since been mitigated.

https://cointelegraph.com/news/rho-markets-returns-online-after-8m-oracle-issue
Rho Markets returns online with no funds lost after $8M Oracle issue
The MEV bot responsible for profiting nearly $8 million in stablecoins returned the funds but wanted the Rho Markets team to admit it was not a hack or exploit.
coin refund
https://scrollscan.com/tx/0x15da6af0207d82d27ca20a542dae1b81580ca1cbfee7028c312229968e356446

https://www.theblock.co/post/308440/attacker-exploits-ibc-hooks-vulnerability-to-steal-tokens-on-terra-blockchain
Attacker exploits IBC hooks vulnerability to steal tokens on Terra blockchain
The perpetrator exploited this vulnerability to drain value from bridged assets, including USDC stablecoin and ASTRO tokens from Astroport Finance. Security firm Beosin estimated that over $4 million worth of tokens were impacted. Meanwhile, the price of ASTRO token has dropped 60% following the incident.

https://www.cryptotimes.io/2024/08/02/hacker-steals-210000-in-cvg-tokens-from-convergence/
Hacker Steals $210,000 in CVG Tokens from Convergence
On August 1, a hacker exploited CVG, converting it into 60 ETH and 15,900 FRAX, collapsing its value.

https://www.coindesk.com/tech/2024/08/06/ronin-bridge-paused-after-9m-drained-in-apparent-whitehat-hack
Ronin Bridge Paused, Restarted After $12M Drained in Whitehat Hack

https://www.coindesk.com/business/2024/08/07/blockchain-protocol-nexara-suffers-18m-exploit-nxra-tumbles-40
Blockchain Protocol Nexera Suffers $1.8M Exploit, NXRA Tumbles 40%

https://www.coindesk.com/tech/2024/09/03/defi-protocol-penpie-exploited-for-27m-of-crypto-assets-pnp-token-craters-40
DeFi Protocol Penpie Exploited for $27M of Crypto Assets; PNP Token Craters 40%

https://www.coindesk.com/markets/2024/09/16/crypto-broker-deltaprime-drained-of-over-6m-amid-apparent-private-key-leak
Crypto Broker DeltaPrime Drained of Over $6M Amid Apparent Private Key Leak

https://x.com/Bedrock_DeFi/status/1839479965685100780
Bedrock | Bitcoin Restaking
We want to reassure everyone that the underlying wrapped BTCs and BTCs in reserves are secure. The total estimated impact of the exploit is approximately $2 million (mostly in DEX LPs). The root cause has been identified and we are taking steps to address it. A comprehensive reimbursement plan is being finalized and will be shared shortly together with a post-mortem report.

https://www.halborn.com/blog/post/explained-the-onyx-protocol-hack-september-2024
In September 2024, the Onyx Protocol suffered a hack that demonstrated the importance of learning from past mistakes. The protocol was exploited for $3.8 million via the same vulnerability that caused $2.1 million in losses in October 2023.

https://www.coindesk.com/tech/2024/10/16/radiant-capital-loses-50m-to-blockchain-exploit
Radiant Capital Loses $50M to Second Blockchain Exploit This Year

https://x.com/CyversAlerts/status/1847246656061739184
It might be possible that
@tapioca_dao
's deployer address has been compromised and owner of the vesting contract has been changed!
New owner has withdrawn around more than 21M $TAP token using emergency rescue!

https://cointelegraph.com/news/online-casino-metawin-hacked-4-million-zack-xbt
Online Casino MetaWin hacked for $4 million — ZackXBT

https://x.com/ThalaLabs/status/1857703541089120541
Thala
On November 15th 2024, Thala suffered a security breach as a result of an isolated vulnerability in the latest update to v1 farming contracts, allowing the exploiter to withdraw liquidity pool tokens totaling $25.5m.

https://x.com/realScamSniffer/status/1859089504994554363
A user lost $129M after copying the wrong address from their transfer history. Fortunately, the scammer returned the funds within an hour!

https://x.com/Clipper_DEX/status/1863263893470003460
DEX Clipper
Statement on Clipper Security Incident Dec 1, 2024
This morning at 4am UTC Clipper’s pools on Optimism and Base were exploited for ~$450,000, roughly 6% of Clipper’s TVL. The attacker attempted to exploit other chains but was unable to do so. As a result, no other chains or pools were impacted. The exploit is no longer ongoing.

____
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https://cointelegraph.com/news/crypto-security-firm-ancilia-shares-drainer-link-radiant-hack
"Crypto security firm Ancilia landed itself in hot water after accidentally sharing a link pointing to a crypto wallet drainer in an attempt to aid users who lost funds in a $52 million exploit of lending protocol Radiant Capital.

Radiant Capital users were rushing to revoke permissions to prevent their funds from being stolen after the lending protocol was hacked on Oct. 16. The attackers made off with about $51.5 million in funds.

Pseudonymous crypto commentator Spreek shared a screenshot of Ancilia’s now-deleted post, which re-posted what they said was a “scam link” from an imposter Radiant X account.

Ancilia instructed Radiant Capital users trying to revoke their permissions on the exploited protocol to “please follow the link from this official message.”

The link led to a wallet drainer that would have siphoned the funds of any user who clicked on it and accepted the permissions. "

https://beincrypto.com/cyvers-report-hacks-2024/
"Crypto hacks in 2024 have already hit $2.114 billion, surpassing all losses from 2023.
CeFi platforms saw a staggering 984% rise in hacks, while DeFi losses dropped 25%.
Cyvers helped mitigate further damage, highlighting the need for real-time defenses."

FBI reports Americans lost $5.6B to cryptocurrency fraud in 2023
The elderly were the most vulnerable, and crypto ATMs have a variety of illicit uses, the report found.
The United States Federal Bureau of Investigation (FBI) Internet Crime Complaint Center has released its cryptocurrency fraud report for 2023. Americans lost $5.6 billion due to cryptocurrency fraud that year, up 45% from 2022, it said. Crypto-related complaints represented 10% of the total received, but almost 50% of the total lost that year, the FBI said.

The report found that of the 69,000 crypto-related complaints the FBI received in 2023, people over 60 were most often victimized, accounting for almost $1.6 billion of the losses. Almost 71% of the crypto fraud was related to investment schemes, and about 10% involved call center fraud and government impersonation scams.

Money stolen through crypto confidence schemes
The FBI received complaints from over 200 countries, but the vast majority of complaints and losses were from the United States. Many of the losses were the result of confidence schemes. The FBI had one main piece of advice to avoid this type of scam:

“There is one thing these scammers typically will not do — they will not meet with you in real life. If an investment opportunity comes from someone who you have never met in person […] be extremely cautious of the advice.”
https://cointelegraph.com/news/fbi-2023-cryptocurrency-fraud-report-americans-lost-5-billion

https://x.com/quillaudits_ai/status/1818972595900805421

"July 2024 has seen a jaw-dropping $275.76M drained from the web3 ecosystem through hacks and exit scams!
@WazirXIndia
 tops the list with a colossal $235M loss, while
@lifiprotocol
 and Bittensor aren't far behind, losing $11M and $8M, respectively.

The situation is dire, with smart contract vulnerabilities at the forefront,
@RhoMarketsHQ
 and
@lifiprotocol
 are prime examples.

Adding to the chaos, rug pulls like ETHTrustFund's $2M scam have shaken the community.

While $7.8M in total were recovered, the call for robust Web3 Security has never been more critical."

https://www.slowmist.com/report/first-half-of-the-2024-report(EN).pdf
"2.1 Overview of Blockchain Security Incidents
According to incomplete statistics from the SlowMist Hacked, a total of 223 security incidents
occurred in the first half of 2024, resulting in losses as high as $1.43 billion. Compared to the first
half of 2023 (185 incidents with losses of approximately $920 million), this represents an over
50% increase in losses. (Note: This report does not include personal losses in statistics)"

https://www.coindesk.com/markets/2024/05/21/gala-games-hacker-returns-23m-in-eth-founder-proposes-buy-and-burn/
"Gala Games Hacker Returns $23M in ETH; Founder Proposes 'Buy and Burn'
Gala investor DWF Labs also said that it had purchased 28 million GALA tokens "to alleviate market selling pressures."

Hacker returned $23 million worth of ether to Gala Games after Monday's exploit.
CEO Eric Schiermeyer said "will probably buy and burn."
Gala investor DWF Labs also said that it had purchased 28 million GALA tokens."

https://twitter.com/peckshieldalert/status/1786447590042779855
"#PeckShieldAlert #Phishing A whale 0x1E22...8FD5 lost ~1,155 $WBTC (worth ~$71 million) after falling victim to address poisoning.
The phisher has swapped the stolen $WBTC for ~23K $ETH & transferred them out"


https://twitter.com/PeckShieldAlert/status/1788880553653002311
"#PeckShieldAlert ~50% of the stolen funds (~11,446.87 $ETH worth ~$34.7m) has been returned to the victim's address"

https://cointelegraph.com/news/pike-finance-exploited-1-6-million-second-exploit-3-days

Pike Finance exploited for $1.6M in second incident in 3 days

"Pike Finance has been exploited, resulting in the loss of $1.68 million worth of digital assets. The incident marks the protocol’s second exploit in three days.

Decentralized finance (DeFi) lending protocol Pike Finance suffered a $1.68 million exploit across the Ethereum, Arbitrum and Optimism chains on April 30, according to a report from on-chain analytics firm CertiK, shared with Cointelegraph.

The attacker used a vulnerability in Pike Finance’s smart contract to change the output address, draining the contract of over $1.4 million worth of Ether , $150,000 worth of Optimism (OP) tokens and over $100,000 worth of Arbitrum (ARB) tokens, according to CertiK."

Mango Markets Exploiter Avi Eisenberg Found Guilty of Fraud and Manipulation
Eisenberg faces up to 20 years in prison for his $110 million heist.
A Manhattan jury has found crypto trader Avi Eisenberg guilty of fraud and market manipulation for his $110 million heist from decentralized finance protocol Mango Markets in October 2022.
Eisenberg was arrested in Puerto Rico in December 2022 and charged with commodities fraud, commodities manipulation, and wire fraud for the scheme. He will be sentenced on July 29 by New York District Court Judge Arun Subramanian. Eisenberg faces up to 20 years in federal prison for his crimes.
“This ground-breaking prosecution epitomizes this office’s ability to employ innovative methods and cutting-edge law enforcement tools to continue to protect all financial markets," said Damian Williams, U.S. Attorney for the Southern District of New York, in a Thursday press statement. "The career prosecutors of this office continue their expertise in prosecuting financial fraud, one of our core priorities, and would-be financial criminals should think twice before daring to engage in illicit conduct on our watch.”
https://www.coindesk.com/policy/2024/04/18/mango-markets-exploiter-avi-eisenberg-found-guilty-of-fraud-and-manipulation/

https://www.msn.com/en-us/money/companies/prosecutors-rest-case-in-mango-markets-fraud-trial/ar-BB1lxgoP
"The government on Friday rested in its case against cryptocurrency trader Avraham Eisenberg, who is facing fraud charges.

Driving the news: Prosecutors presented very strong arguments that the defendant had a good idea he was committing a crime over a year ago, when he managed to extract over $100 million from Mango Markets.

Why it matters: In a fraud case, the government has to not only show that the defendant committed a crime, but that they were aware that what they were doing was against the law.

Catch up fast: Eisenberg is on trial in Federal Court in Manhattan for engaging in a trade where he was able to withdraw all the capital on Solana-based Mango Markets on October 11, 2022, using a derivate of the mango (MNGO) token as collateral.

After inflating the token with strategic purchases on various exchanges, he used the inflated value of a MNGO derivative as collateral to borrow all the available deposits on the platform, over $100 million worth.
Then he withdrew those funds to a wallet he controlled, and let his loan default."

https://www.sec.gov/news/press-release/2023-13
SEC Charges Avraham Eisenberg with Manipulating Mango Markets’ “Governance Token” to Steal $116 Million of Crypto Assets

Prisma Finance Hacked; Hacker Demands Apology and Offers to Return $11M

Following a hack of Prisma Finance that caused an $11 million loot from this prominent liquid staking protocol, a hacker in the decentralized finance (defi) division has made some stunning proposals. This person called themselves to be white-hat hackers since they are good ethical hackers who try to find bugs and fix them. Under certain conditions, the money they stole can be returned according to this incident that took place on March 28.

https://www.msn.com/en-us/money/technology/prisma-finance-hacked-hacker-demands-apology-and-offers-to-return-11m/ar-BB1kOp7O

https://www.theblock.co/post/284883/web3-gaming-platform-munchables-loses-62-5-million-in-exploit-zachxbt
Web3 gaming platform Munchables loses $62.5 million in exploit: ZachXBT
"Munchables, a web3 gaming platform based on the Ethereum Layer 2 Blast, lost $62.5 million in one of the biggest exploits of the year.
The exploiter’s wallet address contained nearly 17,411 ETH, crypto sleuth ZachXBT found.
Munchables reported that the platform had been compromised on the social media platform X. "

https://twitter.com/Cointelegraph/status/1770933644242169997
"The SSS_HQ token faced a near-total value loss after a double-spending flaw was exploited, despite efforts to save funds."

https://twitter.com/Cointelegraph/status/1770941171411386475
"According to @CertiK, this glitch was rooted in the contracts’ _update() function, which failed to accurately update token balances under specific conditions, enabling users to double their $SSS token balance by transferring it to themselves."

Binance-Incubated UGC Platform NFPrompt Discloses Significant Losses from Latest Hack
NFPrompt (Non-Fungible Prompt), an AI-powered User Generated Content (UGC) Platform, recently disclosed significant losses resulting from a hack. According to a post on X, NFPrompt revealed that it had fallen victim to cyber intrusion, resulting in the loss of funds from its platform, including a part of NFP treasury and ecosystem fund.
https://www.coinspeaker.com/nfprompt-losses-latest-hack/

WOOFi Lost $8 Million in Hack on Its Arbitrum Lending Market

"WOOFi, a decentralized exchange, suffered significant financial losses due to an exploit in its Arbitrum lending market, as revealed by the company on Wednesday.

The exploit, identified by several blockchain security firms, including PeckShield, Hypernative, and Chainalysis, involved flash loan attacks targeting WOOFi Swap on Arbitrum around 15:49 UTC on March 5.
In response, WOOFi swiftly halted the affected contracts at approximately 16:02 UTC and initiated an investigation revealed in a report detailing the incident, which was subsequently released on March 6.

The hacker manipulated the sPMM algorithm, which is responsible for setting prices on Arbitrum-based WOOFiSwaps. This manipulation occurred after borrowing 7.7 million WOO tokens and “some other assets.”

The company stated, “At this point WOOFi’s sPMM incorrectly adjusted WOO to an extreme price which was close to zero, and the exploiter then swapped out 10M WOO in the same transaction with almost no cost. The exploiter repeated this attack 3 times within a very short period of time, which netted about $8.75m in profits after returning the flash loans.”"

https://www.cryptotimes.io/2024/03/06/woofi-lost-8-million-in-hack-on-its-arbitrum-lending-market/