Attacks against DEUS Finance resulted in a $13.4 million theft

Earlier this morning, a multi-million dollar Defi breach occurred that resulted in the theft of $13.4 million in cash. DEUS Finance DAO got hit this time.

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DEUS Finance Is Having a Hard Time The Flash Loan Exploit

Another Defi protocol, DEUS Finance DAO, has been targeted by hackers. An early Thursday morning flash loan hack targeted the multi-chain Defi project that uses Ethereum, Fantom, BNB Chain and a number of other Layer 1 networks.

A DEUS liquidity pool on Fantom was the target of an attacker using a flash loan, according to on-chain statistics. Early Ethereum Defi project Aave introduced flash loans, which allow users to borrow an infinite amount of money without putting up any collateral, as long as they pay it back in the same transaction. Due to its important part in several multi-million dollar hacks, flash loans are an example of Defi innovation.

Many recent attacks have used a similar strategy, and this one is no exception. By manipulating a pricing oracle, as blockchain security company PeckShield pointed out on Twitter, hackers were able to artificially raise the price of DEUS’ DEI stablecoin. They then utilised the DEI as collateral to borrow additional money and made a transaction in USDC as a result. They have around $13.4 million left over after repaying the short-term loan.

Hackers utilised Tornado Cash, an Ethereum-based privacy-preserving protocol prevalent in Defi breaches, to drain the cash from Fantom to a “clean” address after performing the flash loan assault.

User money has been safeguarded, according to a subsequent DEUS statement, and DEI lending has been halted. It also said that it will provide further information at a later date. It will have some explaining to do after becoming the victim of a $3 million flash loan scheme only last month.

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