Lava Lending Exploited By Flash Loan Attack; Crypto Worth $340K Stolen

A major decentralized lender, Lava Lending, was the latest target of a sophisticated hack, which eventually led to a loss of about $340,000 worth of cryptocurrencies. Although the vulnerability was directed to different contract categories like UST, wstETH, UDSC.e and USDC, the platform quickly answered the problem.

Peckshield alerts reported that the protocol was exploited for $340K worth of crypto, which included 60,349 $USDT, 8.5 $wstETH, 96,215 $UDSC.e & 77,477 $USDC. 

Lava Lending rectifies this by prompting the security squad to conduct a breach investigation and a closure on the source of the leak. On the platform, all lending markets have been temporarily paused to investigate the exploit and ensure that all needed security measures are implemented.

Exploiter Address Identified

Community members have been sharply invested in getting the exploit address and working together with the exchanges that have supported the address to obtain more information. 

On top of it, the exploit address has already been traced to other recent protocol compromises, which have made people suspicious of whether there are orchestrated actions on decentralized infrastructures.

Also Read: Prisma Finance’s Hacker Emerges as a White Hat with losses reaching $11.6 Million 

Bounty Offered for Return of Funds

To reclaim the stolen amount, Lava Lending announces a 10% bounty for the complete and immediate return of all assets. In addition, the platform has structured a compensation plan for affected victims, which shall be enforced simultaneously with their efforts to retrieve the crypto. 

The company is currently trying to reproduce and test the safety functions, and Lava Lending remains committed to supporting its users with updates as much as they can and prioritising their platform’s security. 

The immediate intervention of Lava Lending, along with the community’s joint effort, portrays the robustness of the security platform despite the challenges it occasionally faces. 

The Defi sector is regularly being hit by hacker attacks like the latest Prisma Finance hack, where the hacker stole $11.6 million worth of crypto. It ended on a good note, as the hack was a white hack rescue.

Also Check Out: This RWA Altcoin on BlackRock’s Radar? Insights From a Crypto Analyst

SOURCE

Leave a Comment