Cryptos Stolen worth $6M; LendHub exploited
On January 12th, the decentralized finance (DeFi) protocol LendHub experienced a significant security breach when attackers siphoned over $6 million in cryptos. According to PeckShield Alert, approximately 2,415.4 ETH (~3.85 million) was transferred into Tornado Cash, an Ethereum-based privacy tool. This marks yet another DeFi exploit that has rocked the blockchain industry, underscoring the potential risks associated with these new protocols.
Exploiters Make Away with Millions in Cryptos from LendHub
The exact method used by the attackers to gain access to the funds is not yet known. However, they were able to exploit a vulnerability within the LendHub protocol. This latest incident follows a string of other high-profile DeFi hacking exploits at various protocols such as dForce, Harvest Finance, Pickle Finance, and others.
As a result of the hack, LendHub has taken steps to ensure that all user funds remain safe and secure. The platform has also disabled its services temporarily as it investigates the incident with the help of third-party security experts. Additionally, LendHub has released an official statement urging users to keep their funds safe, as the breach only involved the protocol’s reserves.
#PeckShieldAlert ~2,415.4 $ETH (~3.85M) into Tornado Cash from @LendHubDefi exploiters
LendHub was exploited, and $6M worth of cryptos was stolen from its protocol on Jan. 12.https://t.co/vDxHlTgR0o pic.twitter.com/8FZY3v2Fe3— PeckShieldAlert (@PeckShieldAlert) February 27, 2023
Security Breach Underscores Risks of DeFi Protocols
The news of the attack has caused some concern among the DeFi community, with members urging users to exercise extra caution when exchanging funds via these protocols. Despite being touted as more secure than traditional finance due to its distributed nature, hackers have again found a way to get around these systems and access users’ funds.
In light of these events, the LendHub team is taking proactive steps to ensure a similar situation does not occur again. The development team continues to investigate the breach and take measures to increase security and protect its users’ funds. Users should take the necessary steps to safeguard their funds as DeFi continues to gain popularity and use care when communicating with unknown services.
