Wise Lending Loses $440K in Cryptocurrency Heist
Date: 2024-01-13 Author: Dima Zakharov Categories: BUSINESS
Hacker Exploits Wise Lending
On January 12, Wise Lending, a prominent player in the world of decentralized finance, experienced a devastating security breach. A hacker managed to abscond with 170 ETH (Ethereum) from the platform. Security experts believe that the hacker manipulated the price oracle through a flash loan to execute this exploit.
The Unverified Contract
Blockchain data reveals that the attack occurred at 19:29 UTC, with the perpetrator utilizing an unverified contract with an address ending in "d82c." Several tokens, including USD Coin (USDC) worth $9,000 and Tether (USDT) worth $2,000, were transferred to this contract.
Exploiting Lido Staked Ether
In a more significant move, the hacker borrowed 1,110 Lido Staked Ether (stETH) tokens, equivalent to $2.9 million, from the Aave lending protocol. Exploiting flash loans to manipulate oracle prices has become a common tactic among attackers in the crypto space.
A Troubling Trend
While 2024 has just begun, decentralized finance protocols have already suffered losses exceeding $5 million due to exploits. On January 3, Radiant Capital lost over $4.5 million, and the following day, Gamma Protocol's liquidity manager fell victim to a $400,000 exploit.
According to Certik, a blockchain security platform, cryptocurrency hacks, fraud, and exploits led to losses surpassing $1.8 billion in 2023 alone. These incidents underscore the need for enhanced security measures in the cryptocurrency industry.
