According to blockchain security and data analytics firm PeckShield, the DeFi infrastructure protocol DEUS Finance has been the victim of yet another flash loan hack. On April 28, the latter tweeted that the protocol had lost at least $13.4 million.
DEUS Finance DAO attack is the most recent DeFi protocol to be hacked. User funds, according to the DEUS team, remain safe. A flash loan exploit was aimed early Thursday morning against the multi-chain DeFi project, which runs on Ethereum, Fantom, BNB Chain, and several other Layer 1 networks.
The most recent multi-million dollar DeFi theft occurred with the attacker stealing approximately $13.4 million. An attacker used a flash loan to target a DEUS liquidity pool on Fantom, according to on-chain data. Flash loans, which were pioneered by the early Ethereum DeFi project Aave, allow DeFi users to borrow an unlimited amount of money without putting up any collateral as long as they repay the loan in the same transaction. While flash loans are an example of DeFi innovation, they have sparked debate because of their major part in numerous multi-million dollar hacks.
This attack follows a pattern that has been repeated in several previous occurrences. The hacker utilized the loan to manipulate a pricing oracle to fraudulently increase the price of DEUS’ DEI stablecoin, according to blockchain security firm PeckShield on Twitter. They then utilized the DEI as security to borrow more money and execute a USDC trade. They had roughly $13.4 million left over after paying off the flash loan.
Following the flash loan assault, the hacker moved the funds from Fantom to Ethereum and transferred them to a “clean” address using Tornado Cash, an Ethereum-based privacy-preserving technology prevalent in DeFi hacks.
DEUS has recently issued an update, stating that customer funds are safe and that DEI financing has been temporarily halted. It also stated that it would provide further information later. The firm will have to explain after being the victim of a $3 million flash loan scam barely a month ago.
