25 millions in bitcoins and Ethereum lost in hack over the weekend.

[Juggy777]

Lending protocol Lendf.me saw some $25 million in ether (ETH) and bitcoin (BTC) exit its wallets late Saturday and early Sunday after its money market pool was attacked. Lendf is one of two protocols supported by the dForce Foundation.

This is really sad news as hacking in these times is the last thing they needed, and I don’t think they’ll ever recover their lost funds and now I’m just hoping that they find a way to survive in these testing times. Further it’s been claimed that this hack was possible due to a bug that they failed to fix, and it’s really sad that they didn’t take better precautions to protect their funds.

Initial investigations carried out by several DeFi and Ethereum (ETH) experts show that this hack may have been caused by a vulnerability of imBTC-ETH interaction, which is required for lending protocols. imBTC is one of the Bitcoin-pegged assets designed in accordance with the ERC-777 standard. This bug made for a number of DeFi attacks possible, including a recent Uniswap hack.

Too Many Red Flags

dForce has already been accused in plagiarizing code for one of the industry-level protocols, Compound. This fact is among the 'red flags' of today's victim Kain Warwick, Synthetix's Founder.

Sources:

https://www.coindesk.com/attacker-drains-decentralized-protocol-dforce-of-25m-in-weekend-attack


https://u.today/dforce-defi-protocol-hacked-25m-in-bitcoin-btc-and-ethereum-eth-stolen

[1714578816]

1714578816

[Apocollapse]

Oh man... Really

This is the one reasons why people afraid to invest in cryptocurrency and other country ban cryptocurrency.

With this news, probably make bitcoin and ethereum price drop a bit. Hope they find the solution for recocer their stolen funds.

[bgaf]

This is really sad news as hacking in these times is the last thing they needed, and I don’t think they’ll ever recover their lost funds and now I’m just hoping that they find a way to survive in these testing times. Further it’s been claimed that this hack was possible due to a bug that they failed to fix, and it’s really sad that they didn’t take better precautions to protect their funds.

This is really unfortunate. Systems has been breached and suddenly 25million$ funds was gone instantly.

This is bad means Imbtc version of erc20 btc is not that safe. Most victim these days are all decentralized, dApps, and defi projects. Companies should really pay attention to these kind of attacks or else people will lose interest on investing on cryptocurrency projects. The hackers might probably dumped it as the market go down hard today.

[Leonardo7]

 I’m just hoping that they find a way to survive in these testing times. Further it’s been claimed that this hack was possible due to a bug that they failed to fix, and it’s really sad that they didn’t take better precautions to protect their funds.
Too Many Red Flags

This is sad in this era of global financia crisis. If it's true they were aware of a bug and they delay fixing it, then this will question their intergrity and define their users loyalty in the future. In any cryptocurrency exchange or wallet security comes first before another thing, only companies who heavily invest in security will survive against these infamous hackers.

[bitmover]

Their website is offline now...

I remember few years ago when Vitalik decided to fork his blockchain to roll back the transactions from DAO hack.

Imo, that was the end of ethereum... It became Vitalik's blockchain .

[Fundamentals Of]

This is terrible. This would be another blow to the overall crypto reputation, its security in particular. For a relatively short period of time when certain amount of wealth is pouring into cryptocurrency, billions are lost to technological thieves. Which probably hits the ordinary people the hardest and how they would perceive crypto from now on.

Many ordinary people attracted into cryptocurrency like me cannot really tell which ones are considered red flag, flaw, lapse, bugs, etc. We are relying on what is presented to us. Most of us cannot get into and properly assess the tiny security details of protocols and wallets and whatnot.

[cryptomaniac_xxx]

As I have said here: [Hack]: Lendf.Me lost $25 million

They never learned, that vulnerability was exposed months ago with ERC777 here:

https://github.com/ConsenSys/Uniswap-audit-report-2018-12#31-liquidity-pool-can-be-stolen-in-some-tokens-eg-erc-777-29

And it just shows how dangerous Defi can be for crypto community.

[dothebeats]

I remember few years ago when Vitalik decided to fork his blockchain to roll back the transactions from DAO hack.

Imo, that was the end of ethereum... It became Vitalik's blockchain .

It really was, for me, the end of ETH knowing how the lead developer himself can force such rollback in a supposedly-safe ecosystem from such authoritative powers. However in this one instance, I don't think Buterin would have to do something, or at least express his views about what happened seeing the flak he and his team received when they did the rollback years ago. Besides, this particular hack is not in any way relatively close to the DAO one in 2016, and is mainly attributed to bad code as was stated by multiple developers months prior to the hack.

You know shit is about to go down when the same people don't listen to experts' advice on a particular matter that could potentially lead to a possible destruction of one certain part of the system. $25M is a huge sum, and I don't think anyone is going to be happy receiving the news--especially the investors.

[BrewMaster]

well the good news is that when the business that is hacked is very little known you can be sure that it has no effects on anything regarding the market. we saw the biggest altcoin exchange (binance) be hacked and that didn't affect the bitcoin price one bit.
in any case i am always skeptical about these hack stories anyways. many of these stories are actually the failed business trying to make some money with little effort and there is nobody to look into them either.

[Harkorede]

I remember few years ago when Vitalik decided to fork his blockchain to roll back the transactions from DAO hack.

Imo, that was the end of ethereum... It became Vitalik's blockchain .

I had the same impression of what would have become of Bitcoin after the $40 Million Binance hack last year, with Zhao considering a re-org approach.

However, I wasn't sure if he had the capabilities or could have garnered the needed support if he wanted to go ahead with such a ridiculous scheme.

[avikz]

Such incidents of hacking is really unfortunate. However, you also have to understand why we are seeing a number of hacking incidents in crypto market over the period of last few years. Probably few billions of dollars have already gone down to drain due to such hacking incidents.

It's a anonymity factor associated with cryptocurrencies. While the community loves their anonymity and their control over their own funds, the same parameter is taken up by the hackers in order to fulfill their illegal need for greed. Because it is literally impossible to find the owner of a cryptocurrency address - hackers are taking up this opportunity to siphon out the money from the legitimate source or businesses. If we have KYC implemented across the width and breadth of the industry, hacker will have a hard time to convert the stolen currencies! Just my two satoshis!

[Ifra24]

This is really sad news as hacking in these times is the last thing they needed, and I don’t think they’ll ever recover their lost funds and now I’m just hoping that they find a way to survive in these testing times. Further it’s been claimed that this hack was possible due to a bug that they failed to fix, and it’s really sad that they didn’t take better precautions to protect their funds.

This is bad news. Trust in DeFi Prime will be broken. Security class deFi can be hacked. We need to learn from here so that our assets are safe. Crypto blokchain has a risk, more secure if stored in the cloud, trezor wallet ofline.

[bitmover]

I remember few years ago when Vitalik decided to fork his blockchain to roll back the transactions from DAO hack.

Imo, that was the end of ethereum... It became Vitalik's blockchain .

I had the same impression of what would have become of Bitcoin after the $40 Million Binance hack last year, with Zhao considering a re-org approach.

This will not happen to bitcoin.
Even if someone actually decide to fork Bitcoin Chain in am attempt to reverse a hack, the community would still stay in the bitcoin fork without the reversal.

As we can in previously forks, such as bch, bitcoin community remained strong and United.

[boyptc]

This is bad news. Trust in DeFi Prime will be broken. Security class deFi can be hacked. We need to learn from here so that our assets are safe. Crypto blokchain has a risk, more secure if stored in the cloud, trezor wallet ofline.

It's just starting to gain traction and something happened like this.

Truly, people who use DeFi will start to lose confidence using it and trust too.

[lahiruu]

This is really sad news as hacking in these times is the last thing they needed, and I don’t think they’ll ever recover their lost funds and now I’m just hoping that they find a way to survive in these testing times. Further it’s been claimed that this hack was possible due to a bug that they failed to fix, and it’s really sad that they didn’t take better precautions to protect their funds.

This is bad news. Trust in DeFi Prime will be broken. Security class deFi can be hacked. We need to learn from here so that our assets are safe. Crypto blokchain has a risk, more secure if stored in the cloud, trezor wallet ofline.

I feel like DeFi was on such a roll before this, the last flash loans attack was much smaller and the impact wasn't so bad.

[hugeblack]

It is not a hack but rather failed to fix a vulnerability (bug) that enabled the hacker to get access to the coin. The question is, why is this failure to fix it^[1]?
As far as the news is bad, it is good, as everyone must stop blindly trusting these platforms and make sure for themselves whether they deserve approval or it is better to withdraw their money as soon as possible.

[1] https://github.com/ConsenSys/Uniswap-audit-report-2018-12#31-liquidity-pool-can-be-stolen-in-some-tokens-eg-erc-777-29

[kotajikikox]

This is really sad news as hacking in these times is the last thing they needed, and I don’t think they’ll ever recover their lost funds and now I’m just hoping that they find a way to survive in these testing times. Further it’s been claimed that this hack was possible due to a bug that they failed to fix, and it’s really sad that they didn’t take better precautions to protect their funds.

We Know how hackers do mate and times like this is their Best opportunity to Victimize because most of the world now are vulnerable and easily to be taken over.
But this is really bad because when all of the world needs help these damn People are taking advantage of the situation.

Happy that it seems no effect in the market because we are still staying strong in this Level.

[rhomelmabini]

I think the hackers are returning part the funds but only 10% of it. I've just gotten this news on my email https://www.thecryptoassociate.com/dforce-hackers-begin-returning-stolen-funds/. It's stressed there that those funds are blacklisted on exchanges and they can't launder hence those are totally worthless now.

[bakasabo]

I remember few years ago when Vitalik decided to fork his blockchain to roll back the transactions from DAO hack.

Imo, that was the end of ethereum... It became Vitalik's blockchain .

Can you send me a link about that. I didnt know that such big blockchains can just rollback because of some unsuitable situation. What was the amount hacked/stolen during dao hack?

Many know such blockchain as Minter (it had bounty campaign here in 2019). Minter owner was scammed for the amount of $70k and made a rollback. Just imagine $70k and already a rollback. But comparing Minter and Ethereum is like ant and elephant.

[Chrystora123]

in any case i am always skeptical about these hack stories anyways. many of these stories are actually the failed business trying to make some money with little effort and there is nobody to look into them either.

yap, This is a Hack against the security of businesses or companies engaged in cryptocurrencies (such as exchanges and so on).. Hacked platform users must learn from this error, they must be smarter in choosing a platform where they are saving assets or exchange..

It is not a hack but rather failed to fix a vulnerability (bug) that enabled the hacker to get access to the coin.

100% right..

[bitmover]

Can you send me a link about that. I didnt know that such big blockchains can just rollback because of some unsuitable situation. What was the amount hacked/stolen during dao hack?

You can read about it here
https://medium.com/@ogucluturk/the-dao-hack-explained-unfortunate-take-off-of-smart-contracts-2bd8c8db3562

By the time, the amount of Eth stolen was about 150million USD, it was the biggest ICO until its time.

A group which was lead by Vitalik decided to fork Ethereum blockchain, adding an smartcontract which would allow holders of the private keys who had their funds stolen to get their amount of ETH back. (I couldn't find details about this in the website I linked you, but a google search can give you more details about how users recovered their coins)

[ritu_bd]

Every year this event is happening ! 4-5 times per year we hear about this hack, we see a hack breaks thousands of dreams of a human being, a human being annihilates a hacker, people continue to live in this Crypto world. Away from it, and that's the main reason for the Crypto collapse. Something has to be done very soon, such as a wallet  or a lid that has to be secured so that the investor's fund is safe, otherwise this Crypto will be destroyed one day.

[BrewMaster]

well the good news is that when the business that is hacked is very little known you can be sure that it has no effects on anything regarding the market. we saw the biggest altcoin exchange (binance) be hacked and that didn't affect the bitcoin price one bit.
in any case i am always skeptical about these hack stories anyways. many of these stories are actually the failed business trying to make some money with little effort and there is nobody to look into them either.

We should not think only in price, but a lot of people will suffer losses from this hack, people who work on the company, and maybe people who have invested money there
The price of BTC doesn't matter in this case

that's true and i didn't want to sound insensitive to those users' losses but lets be honest when someone chooses a less popular service that doesn't really have that much back history and not that much feedback is found about it, they should expect things like this to happen. afterall this is not the first unpopular service to be hacked easily like this.

[Sanugarid]

in any case i am always skeptical about these hack stories anyways. many of these stories are actually the failed business trying to make some money with little effort and there is nobody to look into them either.

yap, This is a Hack against the security of businesses or companies engaged in cryptocurrencies (such as exchanges and so on).. Hacked platform users must learn from this error, they must be smarter in choosing a platform where they are saving assets or exchange..

The reason why some people are not trusting the digital world is because of this, although crime is inevitable but the fact that systems can be hacked is a sign for people to let not get involve. Hackers do progress too just like the security and safety of the system, If I were the CEO of these companies I'll track and try to contact them to give them a job.

It is not a hack but rather failed to fix a vulnerability (bug) that enabled the hacker to get access to the coin.

100% right..

Wait what? I'm not getting you guys seriously, If a hacker gets into the network then it is an incident of hacking then, how come you guys call it a failure and not hacking? Vulnerability on the system just made the easier way for hackers to breach it.

[rexxarofmoknathal]

As sad as it makes me, it doesn't change the reality we live in. That is that digital currency and systems come at their own expense, one of which is clearly hacking. I'm afraid this is an issue that won't go away as even with more advanced systems there'll always be backdoors others could explore if they wanted to. This is why its important to research well into the type of security these platforms you're holding your money on have

[XCANA]

Sad note! many things had happened to the cryptocurrency world whereby exchanges had been hacked, I thought many others will follow suits to protect their exchange against these hackers. Why is there still hackers stealing our coins from exchange? Maybe these hacks are internal and not what we thought they are. But hope investigation are made into these incessant hacks with these exchanges to find the real reason behind these hacks.

[rdbase]

It being the defi lending platform following alot of new people into cryptocurrency jumping on the bandwagon with this sort of thing.
Erc-777 protocol? Never heard of it and probably not good to use their tokens now with it being compromised.
Stick to erc-20 protocol tokenization since it is the standard.

[seoincorporation]

$25 million is a huge amount, it isn't the first time someone abuses the smart contracts to take a big amount of money to their pockets. As i always say:

The problem with smart contracts is the people smarter than them

This is not the last time we will see an attack like this.

[kezinaur14]

I think the hackers are returning part the funds but only 10% of it. I've just gotten this news on my email https://www.thecryptoassociate.com/dforce-hackers-begin-returning-stolen-funds/. It's stressed there that those funds are blacklisted on exchanges and they can't launder hence those are totally worthless now.

So nice of them, any idea why? As you said funds that come from hackers will be considered blacklisted and are going to be hard as heck to get rid of.

I just think it's a weird thing to do at all

[rdbase]

I think the hackers are returning part the funds but only 10% of it. I've just gotten this news on my email https://www.thecryptoassociate.com/dforce-hackers-begin-returning-stolen-funds/. It's stressed there that those funds are blacklisted on exchanges and they can't launder hence those are totally worthless now.

So nice of them, any idea why? As you said funds that come from hackers will be considered blacklisted and are going to be hard as heck to get rid of.

I just think it's a weird thing to do at all

It looks like they took a bigger bite than they can chew with the amount of crypto involved in the hackjob.
They want to negotiate in returning some of the crypto now.
It wasnt just ethereum and bitcoin they took but many others including usdt.

WETH: 55159.02134
WBTC: 9.01152
CHAI: 77930.93433
HBTC: 320.27714
HUSD: 432162.90569
BUSD: 480787.88767
PAX: 587014.60367
TUSD: 459794.38763
USDC: 698916.40348
USDT: 7180525.08156
USDx: 510868.16067
imBTC: 291.3471
source slowmist: https://medium.com/@slowmist/slowmist-details-of-lendf-me-reentrancy-attack-3e168ab5f2b1

[Kelvinid]

This something horrible and hackers will continue to find a way to crack keys even exchanges tried to keep it stronger as they think. This is a huge loose to their part but I'm thinking also about the conspiracy inside or they tried to fool us.

This will give interest to the people and look differently as they will think the high risk as crypto keeps building their reputation. Having this scenario will give an option for those who are planning to invest in crypto will not continue. This is totally a big upset of the crypto community and this will give a hint for every crypto exchanger owners to have strong keys.

[Utoy101]

The whole hacking happening in crypto space is really getting out of hand, like it's been happening since the inception of this space and yet no perfect solution has been provided to put an end to it. Reasoning the whole thing, security is the core features of Blockchain,so seeing hacks happening everyday proofs how the whole market is not yet ready for mass adoption and believe it or not, if this hack and security breach aren't hammered out, the outside world will see this market as a fragile one

[rhomelmabini]

I think the hackers are returning part the funds but only 10% of it. I've just gotten this news on my email https://www.thecryptoassociate.com/dforce-hackers-begin-returning-stolen-funds/. It's stressed there that those funds are blacklisted on exchanges and they can't launder hence those are totally worthless now.

So nice of them, any idea why? As you said funds that come from hackers will be considered blacklisted and are going to be hard as heck to get rid of.

I just think it's a weird thing to do at all

I don't know why they are returning those funds but I think it's because of the problem the hackers are into right now that those can't be laundered on any exchanges and right now they are the one making amends to dforce. It isn't weird I guess in fact if they can't use it I guess they need strategy so that they can still have the prize of what they've done, I guess we have to stay tune for another news regarding that if they have to full refund the funds or the hackers just got a little percentage of those because on the link they said they are still on negotiations.

[CaVO32]

The whole hacking happening in crypto space is really getting out of hand, like it's been happening since the inception of this space and yet no perfect solution has been provided to put an end to it. Reasoning the whole thing, security is the core features of Blockchain,so seeing hacks happening everyday proofs how the whole market is not yet ready for mass adoption and believe it or not, if this hack and security breach aren't hammered out, the outside world will see this market as a fragile one

this will really give a negative implication in crypto market in general. Those who really don't know about crypto or bitcoin will think that crypto is very vulnerable to fraud or hacking and that it is not safe to use crypto. We can't really stop these hacking incidents as the softwares are getting advanced these days. And if a certain crypto company especially crypto exchanges will not be tight with their security protocols and upgrade their security firewalls, they will always be the target of these hackers.

[Sadlife]

Oh man... Really

This is the one reasons why people afraid to invest in cryptocurrency and other country ban cryptocurrency.

With this news, probably make bitcoin and ethereum price drop a bit. Hope they find the solution for recocer their stolen funds.

DeFi (decentralize finance ) is a new thing and can be subject with a lot of vulnerability that's im very cautious in investing in it. Basically before investing in anything, choose assets or technologies that are safe and secured with proven though time like Bitcoin and its Blockchain technology and if you want much safer asset, invest in Gold.

[Ifra24]

It is not a hack but rather failed to fix a vulnerability (bug) that enabled the hacker to get access to the coin. The question is, why is this failure to fix it^[1]?

It's the same, using bugs to steal. If it was done by ordinary people how could it be? I think it's still a hacker. Unwise step already know there are bugs? The team has another alternative to secure assets. For example moved, or temporarily offline. I heard that the team already knew, there was an Hack trial on their platform. This is really sad.

[maxreish]

That is really a huge amount and that was only over the weekend? The increasing percent of hacking issues in cryptocurrency is really disappointing. We are building the image of cryptocurrency and yet these hackers are destroying it.
 
 How can we fully trust it after those hackers successfully thief bitcoin and eth? Especially those exchanges that they are targeting and probably hacked, their security is at question because hackers tend to enter their security system.

[peggysimmons]

This is really sad, I also think they might not be able to recover a lot of assets, and this is a lesson for them to always pay attention to gaps even though they look small, because they haven't been able to fix bugs. in the end they get attacks from hackers

[Ifra24]

News from https://www.coindesk.com/Hackers who spent $ 25 million in cryptocurrency from the dForce decentralized financial protocol over the weekend sent back almost all the stolen assets. It's amazing there are still kind-hearted hackers. But this is strange in my opinion.

Source: https://www.coindesk.com/dforce-hacker-returns-almost-all-of-stolen-25m-in-crypto