DeFi Protocol dForce Loses Over $25M in Bitcoin (BTC) and Ethereum (ETH) in an Attack On Saturday
AI Trading

According to a trending report from DeFi Pulse, a decentralized finance protocol dForce has lost over 99% of its assets in an attack on its system on Saturday, 18th April 2020.

This recent loss recorded by the Lending protocol is totaled $25 million in Bitcoin (BTC) and Ethereum (ETH). The funds disappeared from its wallets late Saturday and early Sunday after a coordinated attack. Lendf represents one of the two protocols backed by the dForce Foundation.

Speaking to a Chinese media outlet, the lending protocol said, “ confirmed it was attacked at 8:45 Beijing time Sunday at block height 9899681.”

According to speculation going around among other DeFi protocol builders, the attack was initiated by imBTC, an Ethereum (ETH) token pegged one-to-one with Bitcoin (BTC), which was used as collateral that suddenly turned fraudulent, giving room for the attacker to siphon funds without stress.

AI Trading

DeFi Protocol dForce Loses Over $25M in Bitcoin (BTC) and Ethereum (ETH) in an Attack On Saturday

What is not clear now is whether some users were able to withdraw their funds or the attacker took over all the $25 million, which is over 99% of its assets. Howbeit, the CEO of Compound, Robert Leshner related that the attacker took over all the funds.

It reads on Lendf’s official website that “Do not supply anymore!” While Mindao Yang, the CEO of the dForce foundation claimed that the team is still investigating the incident, urging users not to supply any asset into from now till further notice.

Robert Leshner, the founder, and CEO of Compound wrote:

“If a project doesn’t have the expertise to develop its own smart contracts, and instead steals and redeploys somebody else’s copyrighted code, it’s a sign that they don’t have the capacity or intention to consider security. Hope developers & users learn from the hack.”

Leshner further told CoinDest that “This is a follow-up attack to the imBTC Uniswap attack yesterday”, noting that imBTC is not a normal Ethereum (ETH) asset.

He added that “Smart contracts that include imBTC have to be extra cautious, and write additional code to protect against ‘re-entrancy attacks.”

AI Trading produces top quality content for crypto companies. We provide brand exposure for hundreds of companies. All of our clients appreciate our services. If you have any questions you may contact us. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors and the views expressed in them do not reflect the views of this website. Herald Sheets is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.

Tobi Loba

By Tobi Loba

Tobi-Loba is a creative and an award-winning writer with over 5 million readers from all over the world. She has B.A in English and Literature from a reputable University and currently studying for her M.A in the same field. She recently became a contributor at Herald Sheets in order to satisfy her thirst in reporting crypto and blockchain occurrences, the interest she built over the years.