Curve Finance managed to recover 70% of the funds stolen by the hacker
Date: 2023-08-13 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
Decentralized protocol Curve Finance announced the return of 70% of the funds stolen in the attack on the pools on July 30th.
The project team promised to return the cryptocurrency to users affected by the incident.
Affected Curve Pools
On July 30, Curve Finance experienced a major hack that took place in two stages. Initially, hackers stole about $26 million due to a re-entry vulnerability in pools. This was followed by the second stage of the attack, during which the attackers withdrew 7.1 million CRV worth $4.4 million and 7680 WETH worth $14.37 million from the CRV-ETH pool.
The incident occurred due to a vulnerability in an outdated version of the Vyper programming language, which allowed problems with re-entry into the Curve smart code. As a result, TVL dropped from $3.26 billion to $1.72 billion, a drop of nearly 46% in 24 hours.
Analysts at the Kaiko platform said that the incident significantly undermined the credibility of the stETH-ETH pool, which continues to record large outflows of funds and loses liquidity.
The protocol managed to return 70% of the stolen funds
So far, Curve has managed to recover 70% of the stolen funds. A significant role in this was played by white hat hackers, including Coffeebabe.eth. The project team evaluates the losses suffered by users in order to distribute the recovered assets.
Curve is also actively exploring ways to recover the remaining $18.5 million. On August 6, the protocol offered a reward of 10% of that amount for identifying the cracker. In the case of a full refund of the stolen assets, the team will refuse to pursue the attacker.
Curve Ecosystem Recovers Strongly
Despite the fact that only 2 weeks have passed since the exploit, the Curve ecosystem is showing strong signs of recovery. A few days ago, Binance Labs invested $5 million in the CRV token. In addition, the project received significant support from the founder of Tron, Justin Sun.
The total value of assets locked on Curve also began to rise. According to DeFillama, TVL increased by 2% over the past week to $2.41 billion.
