DEI, a stablecoin of the DEUS decentralized finance (DeFi) protocol, had more than $6 million taken from it in a hack as of May 6. More than $5 million was lost on Arbitrum, an Ethereum layer-2 solution, and $1.3 million on BNB Smart Chain (BSC).
DEI losses over $6M in a hack
A report from PeckShield, a blockchain security company, says that DEUS Finance lost more than $6 million in a hack that targeted two networks, BNB Chain and Arbitrum.
Hi @DeusDao: it appears to be a pubic burn vulnerability with loss > $1.3M alone at BSC. The ARB/ETH deployments are also affected.
The BSC hack was successfully frontrun by a bot: https://t.co/hXskQOIfwV
The DEI token @ BSC was upgraded on Apr-10-2023 https://t.co/QJHwnZaXMk pic.twitter.com/C51CnVsg1B
— PeckShield Inc. (@peckshield) May 5, 2023
DEUS confirmed that they had been hacked and said they had lost $5 million from the Arbitrum network and $1.3 million from the BSC.
PeckShield said that a bot started the hack and that the bot also broke into the ARB and ETH deployments.
For all white hackers that were able to rescue funds during the DEI exploit from today 05/05/2023
We are confirming 0x7f5ae1dc8d2b5d599409c57978d21cf596d37996
As a DEUS team owned multisig on Arbitrum.
Please get in touch with us if you have not already. https://t.co/7w5y6Nh2EM— DEUS (@DeusDao) May 5, 2023
The white-hat hackers found that DEI’s smart contract had a flaw that let anyone create a new DEI without any oversight. Hackers used this hole to try to steal DEI from the networks that were affected.
The DEUS team was happy with how quickly the white hackers responded and stopped the affected contracts, cutting costs. Since then, these papers have been thrown away.
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