Another Defi Hack: Origin Dollar Loses $7 million

[Jating]

https://medium.com/originprotocol/urgent-ousd-has-hacked-and-there-has-been-a-loss-of-funds-7b8c4a7d534c

The Origin Dollar (OUSD) has been hacked. The team is all-hands on deck attempting to figure out what vulnerability was exploited and how the hacker was able to access users’ deposits. Expect an updated post within an hour.

This transaction seems to be the root of the attack:

https://etherscan.io/tx/0xe1c76241dda7c5fcf1988454c621142495640e708e3f8377982f55f8cf2a8401

At this time, there has been a loss of funds of around $7M, including over $1M of funds deposited by Origin and our founders and employees. We will be working tirelessly until we can determine the cause of the exploit and whether we will be able to recuperate these funds. We are very incentivized to give 1000% in resolving the issue in whatever way possible.

We have disabled deposits to the vault. Please do not buy OUSD on Uniswap or Sushiswap as the current prices do not reflect OUSD’s underlying assets.

This is a quickly moving process, and our entire team has been mobilized to tackle this crisis. We will be making frequent updates via our blog, Telegram, Twitter, and Discord. In times of crisis, it is important that we are fully transparent and accountable. We are ready to answer your questions.

At this time, we would like to extend our sincerest and deepest apologies to those early OUSD users that have deposited funds with us. We very much valued and appreciated your early bet on our new product, and we will work tirelessly to get to the bottom of this.

We are not going away. This is not a rug pull or internal scam. Despite this setback, it is very much in our intention to make OUSD a safe, secure, and successful product that builds on the broader Origin mission of peer-to-peer commerce. We are sorry for the events of today, and we will carry this burden forward to do better.

So unfortunate that this is the fourth hack of the month. The attack was thru "re-entrancy" bug, it was the some bug exploited by hacker during the DAO hack.

I don't know how long can we take this attack on this Defi hype, millions have already been lost to this criminals and obviously investors is on the losing end here.

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[DoubleAweSeven]

Fourth time of the month? I think it's time for people to realize that DeFi moments is over and that a lot of DeFi projects is exiting the market now. Better exit the market now too before it's too late and invest in Bitcoin or other cryptocurrency that isn't DeFi.

[mu_enrico]

Whenever the technology is untested and yet has so much value == disasters.
Is it going to be the end of OUSD? I think so. Who's going to trust this token again?

[Tushar Ramani]

This is terrible. I had participated in dozens of ICOs in 2017-18 but I felt they were safe technically. Because of this uncertainty, I didn't touch any DeFi till now. The DeFi trend built quickly and disappearing rapidly too. Therefore, it is still better to exit such coins being in profits.

[Chuky92]

What lead to the end of the ICO era was the high rate of scam recorded hence leading to lack of interest and now in the DeFi space, not only is the hype over but hackers are now having a field day with them. Many Defi projects has been hacked and millions stolen, maybe it is right to say that DeFi projects are not that strong as thought of, people can't continue losing money to hackers and also be expected to associate with these projects; hence this might lead to lack of interest and possible overlooking of DeFi projects and that will also mean the end of it. Origin Dollar platform being hacked, might not be able to come out from the situation because, automatically investors will not find it trustworthy enough to invest or even hold their tokens. Another issue this will likely present is that, most people will find it hard trusting other Defi projects or rather the upcoming ones.