Pike Finance: Several Hacks and Stolen Millions
Date: 2024-05-02 Author: Oliver Abernathy Categories: IN WORLD
The Pike Finance cross-chain lending protocol experienced two major hacks in just five days, costing the project nearly $2 million.
Protocol Vulnerability: The Key to Hacking
In both cases, hackers exploited a contract reassignment vulnerability to bypass admin restrictions and remove assets from the Ethereum, Arbitrum, and Optomism networks.
On April 26, 2024, Pike Finance lost 300,000 USDC as a result of a hacker attack. A hacker managed to exploit a contract vulnerability to remove funds from the protocol.
Just two days after the first attack, a second hack occurred, resulting in Pike Finance losing $1.68 million, including over 479 ETH, 64,126 OP, and 99,970 ARB.
Settlement Proposal
The Pike Finance team offered the attacker a settlement, offering 20% of the stolen funds in exchange for the return of the rest of the assets. However, at the time of writing, there was no response from the hacker.
The investigation into the two attacks included the participation of protocol partners and cybersecurity companies, demonstrating that the cryptocurrency industry takes security seriously.
The Pike Finance hack has highlighted the need for improved protocol security in the decentralized finance industry, as well as increased awareness and vigilance within the cryptocurrency community.
