By George Ward
DFX Finance was hacked on November 11, and the attacker drained $4 million from the company’s coffers. The attacker then funneled the funds to Tornado Cash, a mysterious online entity.
Investigators are still trying to determine the full extent of the damage and identify the perpetrator. Since the hack, DFX Finance has been working to contain the damage and restore service.
The company has estimated that the losses are worth 3,000 ETH, or about $4 million. PeckShield posted the incident on Twitter on November 11 and explained that the attacker exploited the protocol’s DEX pool.
DFX Finance is a new financial technology company backed by some of the biggest names in the industry. The company’s backers include Polychain Capital and Hex Capital.
DFX Finance is a blockchain-based financial technology company that aims to provide users with a more efficient and secure way to manage their finances. The company’s platform is built on smart contracts and blockchain technology.
Users get increased transparency and security when it comes to their finances. DFX Finance is already available to users in select countries, and the company plans to expand its global presence in the coming years.
Furthermore, the value of its protocol’s token dropped after news of the hack. The DFX token is currently around $0.167, dropping over 33% in the last 24 hours.
This token was also mentioned in the Coinbase insider trading incident and confirmed as a security by the SEC.
DeFi Hacks Increase In 2022
DFX Finance is one of the latest victims of crypto theft. Earlier this year, digital currency exchange Bitfinex was hit with a $65 million heist. In August, Japanese cryptocurrency exchange Coincheck was hacked for $530 million.
Cryptocurrency exchanges are at high risk for cyberattacks. They are often targeted because they are vulnerable to sophisticated infiltration techniques. Also, they are often poorly protected against malware.
One of the leading blockchain analysis firms, Chainalysis, recently released a report analyzing the perpetrators of crypto hacks. The report found that the DeFi (decentralized finance) sector has been the victim of 60% of all crypto hacks.
In addition, Chainalysis observed that crypto inactivity had reached an all-time high, which is not surprising given the growth in attacks. Nevertheless, criminals are increasingly creating more diverse means that make it harder to track them down.