Key Points

  • Sturdy Finance, a popular DeFi lending protocol, has been compromised by crypto attackers.
  • The attackers made away with around $800K

Crypto hackers strike again; Sturdy Finance affected

Sturdy Finance, a well-known Decentralized Finance lending protocol, has fallen prey to hackers that managed to drain $800K. The platform has responded by saying that it has paused all markets and no further funds were at risk.

The attackers managed to drain 442 Ethereum, worth around $800K at the time of writing, after discovering a security loophole in its systems and exploiting it. They took advantage of the vulnerability that allowed them to manipulate a faulty price Oracle hence draining funds from the protocol.

The event was first noticed by onchain security firm PeckShield alert that went ahead to alert Sturdy Finance. Peckshield noticed anomalies within the transactions being made in the platform as they knew that Sturdy Finance had to be compromised as the transactions showed price manipulation signs.

About an hour later, Sturdy Finance said that they had been aware of the vulnerability and were working on it first by pausing all markets to hinder the continued outflow of further resources to the attacker’s loot.

Despite the efforts, the attacker had already transferred the monies to the Tornado Cash crypto mixer, making it harder to continue tracking it. This attack against Sturdy Finance comes when the crypto space sees increased cyber attacks. Recently, BitBoy, a popular crypto influencer, had his Twitter account hacked to promote scam projects.

Crypto detective Zach XBT says that scammers have made away with almost a million dollars by taking control of social media accounts belonging to popular individuals like Pudgy Penguins, Peter Schiff, Steve Aoki, and many others. As such, crypto investors should be more careful when dealing with the industry to protect themselves from such events.

Keep watching Fintech Express for updates on crypto and other fintech-related stories and developments.