$6M Lost: DEUS Finance Hit by Stablecoin Hack!
According to CoinMarketCap data, the attacker targeted the Arbitrum network and the BNB Smart Chain. As a result of the security breach, the price of DEI fell by 30%. DEUS Finance Hit is a provider of the Decentralized Finance (DeFi) system.
Further, it has lost over $6 million due to a security issue on its stablecoin DEI (DEI). PeckShield, a blockchain security company, reported that, On May 5, the hacker took advantage of the BNB Smart Chain (BSC) issue.
Key Takeaways:
- The attackers targeted the Arbitrium network and BMB Smart chain because of the security breach.
- The price of DEI fell 30%.
- The hacker took advantage of the security breach in BNB Smart Chain (BSC).
- DEI is a collateral process for 3rd party phantom instruments based on protocol.
- A Flash Loan attack results in $3 million in Dai and Ether.
The bot started the BSC hack, which cost over $1.3 million. ARB/ETH setups lost about $5 million due to the attacker’s targeting of the Arbitrum network. According to Twitter users, a fundamental implementation fault was the token contract’s source.
DEUS Finance Hit
To stop additional harm, the system accepted the attack, burnt DEI coins, and stopped all contracts.
According to the Deus team on Twitter, we now understand the true backing of DEI tokens. We will establish a thorough recovery and redemption strategy after thoroughly studying the pictures and balances.
DEI is a collateral process for third-party Fantom protocol-based instruments. According to CoinMarketCap data, over the last 24 hours, its price fell 30%.
At writing time, the stablecoin trades at $0.20, down from its $0.30 peg. Stablecoin forfeited its $1 peg from the previous year after Terra fell.
Deus Finance has experienced hacking, not for the first time. In March 2022, an attack of the flash loan in the protocol was attacked.
This resulted in more than $3 million in Ether and Dai losses. PeckShield claimed then that the fraudster used the cryptocurrency mixer Tornado Cash to funnel the stolen money.
Deus Finance is a decentralized exchange. It enables buying and selling on the Ethereum blockchain involving non-digital and digital assets.
Crypto Influencers and Platforms Stunned by DEUS Finance’s Hit!
Katelyn Dibbert took to Twitter and made an announcement that a bot started BNB smart chain hack which cost the company $1.3 million. Arbitrum deployments were also a target for the attacker.
Wen3 took to Twitter and made an announcement that the attacker attacked both the Arbitrum network and BNB Smart Chain. According to CoinMarketCap data, the price of DEI decreased by 30% because of the security breach.
Jason Fernandes took to Twitter and made an announcement that Following a stablecoin hack, DEUS Finance suffered a $6M loss.
Do You Know?
- The hackers exploited a flaw in the smart contract code of DEUS Finance’s USD stablecoin, which allowed them to mint large amounts of the stablecoin without backing them with collateral.
- DEUS Finance initially reported a loss of $5 million due to the hack, but later updated the figure to $6 million, making it one of the largest DeFi hacks in recent history.
- The hack occurred just one day after DEUS Finance launched its new platform, which was designed to provide decentralized trading and asset management services.
- DEUS Finance was initially praised for its transparency and quick response to the hack, with the team providing regular updates to users and the wider crypto community. However, some users have criticized the team for not catching the flaw in the smart contract code before the hack occurred.
- Following the hack, DEUS Finance has implemented new security measures, including a bug bounty program and increased auditing, to prevent future attacks and protect user funds.
Crux:
According to recent news, the hacker attacks Arbitrium Networks and BNB Smart Chains. Due to the stablecoin hack, DEUS finance suffers dollars six million loss. ARB/ETH setups lost about $5 million in this security breach.