Another assault on Inverse Finance results in a $1.3 million theft and a $5.8 million protocol loss.
Inverse Finance suffered another attack on June 16, when an Oracle price manipulation explosion allowed a hacker to steal about $ 1.3 million, worth $ 5.8 million to the protocol.Blockchain security firm BeckShield has released details of the incident in a series of tweets. This latest attack is the second attack on the DeFi protocol in less than two months. In April, Inverse Finance suffered an attack that resulted in a loss of $ 15.6 million. A detailed account of the attack was later published on Inverse Finance’s website. The attacker then traded wBTC in the trikriptopool, which raised the price of the LP token on the price oracle and allowed the hacker to borrow DOLA – the stability of Inverse Finance – as collateral on the Frontier Inverse Finance platform. According to the tweet, PeckShield, using Etherscan data, found that 68 ETHs of the stolen amount were still held by the hacker, while 1,000 ETHs were deposited in Tornado Cash.
The Inverse Finance hack said no user-deposited collateral was affected, but Frontier Fed noted that Inverse Finance DAO had $ 5.8 million in bad DOLA debt. That’s in addition to the approximately $ 3.8 million in DOLLAR debt that arose from the April hack.The DeFi protocol added that since no individual user was directly affected by the event, there is no need to adjust its fine-tuning for users affected by the April event. Inverse Finance outlined a number of security measures, including repayment plans and plans to make the DeFi platform more secure.
It contains an explicit request from the hacker to return the funds for a “generous reward”. In addition, the DAO has promised to provide data related to the attack to anyone who wants to help recover the reward funds. Inverse Finance announced that it had hired the services of RiskDAO’s security department to detect the attack and hired additional security personnel. Finally, Reverse Finance has suspended all asset lending on the Frontier platform, but is expected to begin lending assets with ChainLink and INV channels.