Fei Protocol Exploited For $80 Mln, Funds Moved Into Tornado Cash

Ethereum-based DeFi trade Fei Protocol misplaced about $80 million value of tokens in an exploit on Saturday, on-chain information confirmed. The protocol supplied the hacker a $10 million bounty to return the stolen funds.

In a collection of transactions, the attacker appeared to have moved  about $80 million of Wrapped Ethereum from the protocol, and into their private pockets. The hacker now seems to be laundering the stolen funds into mixer Tornado Cash, the place they’re sure to grow to be untraceable.

Multiple liquidity swimming pools belonging to Rari Capital and Fei gave the impression to be the goal of the assault.

Fei is an Ethereum-based protocol that makes use of tokenomics to take care of the 1:1 greenback peg for its stablecoin Fei USD. But the information of the hack seems to have destabilized the stablecoin, which is now buying and selling at $0.986, in response to information from Coinmarketcap.

Fei’s governance token, $TRIBE, plummeted 10% in minutes after the assault.

Fei Protocol presents $10 mln bounty

On its official twitter deal with, the DeFi protocol acknowledged the hack, and supplied the exploiter a $10 million bounty to return the funds.

We have recognized the basis trigger and paused all borrowing to mitigate additional injury. To the exploiter, please settle for a $10m bounty and no questions requested should you return the remaining consumer funds.

–@feiprotocol

But provided that the funds are already being moved right into a token mixer, it appears unlikely that such a situation will play out.

Crypto safety agency Blocksec said the reason for the exploit is because of a typical “reentrancy vulnerability,” a standard vulnerability in Ethereum-based good contracts.

An analogous exploit was used within the now-infamous DAO Hack of 2016 to steal over $70 million value of tokens.

A nasty week for DeFi?

This week has seen a string of exploits and hacks within the DeFi house, with a complete of over $100 million in tokens being stolen. Earlier on Saturday, Ethereum-based DeFi protocol Saddle Finance was exploited to steal over $10 million.

Fantom-based Deus Protocol lost $13 million earlier this week. The perpetrators of those assaults are unknown.

But the U.S. authorities had not too long ago warned {that a} infamous North Korean hacking group, referred to as Lazarus, is popping its sights on DeFi protocols. The group is behind the record-breaking Axie Infinity hack, which noticed over $600 million stolen.

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