Sifu, the former chief financial officer of Frog Nation, lost $19.4 million in an oracle manipulation assault that hit his lending protocol, Uwu Lend.
First to discover the vulnerability, Cyvers disclosed a complex sequence of three transactions carried out in under six minutes. The thieves used Tornado Cash to buy Wrapped Bitcoin (WBTC) and Dai (DAI), which they then turned into Ether (ETH).
The decentralized finance (DeFi) system UwU Lend was the victim of a continuing crypto attack that gained approximately $20 million on Monday, June 10. It was the on-chain security company Cyvers who discovered the problem and posted on social media platform X to notify the community:
“Hey @UwU_Lend, someone is trying to get you! At this point, the address has received almost fourteen million dollars…”
Cyvers claims that a complex sequence of transactions led to an assault on UwU Lend, a liquidity market where users may deposit and borrow digital assets. Within an hour after the first alarm, the hack had grown to include almost $20 million in stolen cash.
Tornado Cash, a crypto-mixing technology, provided the funding for the lightning-fast and pinpoint assault. The hacker depleted around $20 million in only six minutes via three fraudulent transactions. Tornado Cash provided the attack’s funds, as Cyvers revealed two days prior to the exploit.
Peckshield claims that the sUSDe asset, which was valued using a median from many sources, has a pricing oracle flaw at its core. During the hack, the perpetrator modified five sources, leading to the vulnerability.
Quickly halting its procedure and setting borrowing and deposit rates to 0% to safeguard user holdings, UwU Lend responded to the assault by pausing it. On their X page, the squad explained what they were doing right now and what they were looking into right now:
“We are now waiting for the hacker to respond to the offer we made. There will be no more changes to the procedure until the study is complete.”
In a bid to dismiss any charges, UwU Lend creator Michael Patryn—also known as 0xSifu—offered the hacker around $16 million in cryptocurrency. Through an on-chain message, he declared:
“A 20% white hat reward on any funds stolen is on the table. We will not pursue this further, and you will not have any problems with police enforcement.”
Anyone who could identify the exploiter and assist in their apprehension would be eligible for the reward after the deadline had passed. The scenario became much more complicated when another person offered the hacker instructions on how to shift the cash undetected via an on-chain communication.
Two addresses presently hold the stolen funds, which include substantial sums of WETH, WBTC, bLUSD, crvUSD, sDAI, CRV, DAI, USDT, and sUSDe. Roughly $23 million is the sum amount of the projected losses.
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