• Tue. Apr 23rd, 2024

$6 Million Stolen, As DEUS Finance, Suffers A Stablecoin Hack

Maria Bartiromo

ByMaria Bartiromo

May 7, 2023

Recent investigations have revealed that a Binance Smart Chain (BSC) bot was responsible for a stablecoin hack that cost DEUS Finance, a decentralized finance (DeFi) network, $6 million. The stablecoin, which serves as the protocol’s liquidity pool, is trading at $0.20 after losing its $0.30 peg. The company disclosed that the attack resulted in a nearly $1.3 million loss.

According to sources, the attacker took advantage of a flaw in the stablecoin’s smart contract to create an infinite supply of tokens, which they then utilized to influence the liquidity pool of the company. The attacker successfully drained the pool of funds, causing DEUS Finance to suffer a large loss.

It is important to note that this is not the first time DEUS Finance lost a considerable amount of stablecoins. Following the demise of Terraform Labs, the stablecoin also lost its $1 peg the previous year. The report has it that investors suffered a substantial loss due to the failure of the peg because the stablecoin’s value had a noticeable decline.

To prevent panic among its consumers, DEUS Finance has assured them that a remedy for the exploit is being developed. The protocol has also stated that it will cooperate with law enforcement organizations to track down the perpetrator and get back the stolen money.

A nearly $5 million loss resulted from the attacker’s targeting of the Arbitrum network and the BSC hack, where they deployed ARB/ETH contracts. Although it is unclear if the two attacks are connected, DEUS Finance has stated that it is looking into the problem and will go public with more information as soon as it is available.

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Cryptocurrency Community Worried Over Incessant Attacks 

The event has once again brought attention to the dangers of putting money into DeFi protocols, which are still under development and are prone to hacks and attacks. Despite the fact that the potential for significant returns has drawn many investors to the sector, occurrences like this highlight the necessity for care and thorough diligence.

Findings into this development shows that the security of smart contracts, which form the basis of many DeFi protocols, has also been scrutinized due to the attack. More information that was made public shows that although it has many advantages, such as more efficiency and transparency, it can also have faults and vulnerabilities that attackers might take advantage of.

In response to the occurrence, some crypto community members have demanded more regulation of the DeFi space. One of the main characteristics of DeFi protocols is their decentralized structure, making it challenging for regulators to monitor and enforce standards. However, some believe that stricter regulation is required to safeguard investors and guarantee the DeFi ecosystem’s long-term viability.

Cryptocurrency Community Optimistic Amid Attack 

According to some industry experts who commented on this matter, the DEUS Finance hack serves as a reminder of the importance of exercising prudence and due diligence before investing in DeFi protocols. While the prospect of huge returns is attractive, investors must be aware of the hazards and take precautions to keep themselves safe.

The event also emphasizes the requirement for stricter regulations and security measures in the DeFi sector. It will be interesting to see how the space responds to these difficulties as it develops and matures and whether it can realize its full potential.

Further research into this development revealed that this is not the first time DEUS Finance is experiencing a hack like this. It was revealed that sometime in March 2022, the company was hit by a “flash-loan attack,” which made them lose more than $3 million worth of Dai and Ethereum. 

Meanwhile, many in the cryptocurrency community remain optimistic about DeFi despite the concerns, with many thinking that this can disrupt the established financial structures. But occurrences like this serve as a warning that the field is still developing and that there are dangers present.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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