Hundred Finance recently encountered a hacking incident, with the hacker walking away with an approximate of $7 million in digital assets. The protocol team is currently compiling a post-mortem on how the incident occurred and is advising users not to speculate until an official statement is made. Hundred Finance is also engaging in negotiations with the hacker to get back part or all of the stolen monies. Compound V2 users need to remain vigilant too, as this is a common vulnerability.

CertiK, a blockchain security company, has disclosed the details of this attack on its Twitter page. The hacker managed to manipulate the exchange rate between Ethereum ERC-20 and hTOKENS, thus stealing the previously mentioned amount. According to Hundred Finance’s website, hTOKENS are tokenized representations of user deposits and their value may vary depending on the activity of other borrowers.

Shockingly, this is not Hundred Finance’s first hacking incident. In 2022, Hundred Finance and Agave jointly suffered a combined loss of $11 million due to a reentry attack on Gnosis Chain. Flash loan attacks have become an increasingly popular method for criminals to target DeFi platforms. The Euler Finance attack in 2021 caused $196 million in damages and the Mango Markets attack in 2022 caused $46 million in damages. Although the hacker in the Euler Finance incident refunded a majority of the stolen funds, the Mango Markets criminal was apprehended and prosecuted by US law enforcement.

Cryptocurrency users must realize the importance of security and implement measures to protect themselves and their funds. Therefore, it is essential to use secure wallets, to not leave funds idle and to stay up to date with the latest security news. These measures may prevent attacks but being informed of potential threats is essential too. All cryptocurrency users should keep an eye out for news related to security breaches and take into account all recommended safety procedures.



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