dForce Attacker Returns All $4 Million In Stolen Money

Key Points:

DeFi protocol today tweeted that the attackers returned all the stolen funds to the project’s multi-signature addresses on Arbitrum and Optimism.

1/5 On Feb 13, 2023, the exploited funds were fully returned to our multi-sig on both Arbitrum and Optimism, a perfect ending for all.

All impacted users will be made whole, we will announce the details for distribution of the funds over the next few days.

— dForce (@dForcenet) February 13, 2023

At the same time, the protocol also announced that all affected users would be compensated, and details of the allocation of funds would be published.

The hacker’s act of kindness resulted from dForce’s efforts after discovering the hack on its protocol.

“Shortly after the incident, we started talking to the attacker, who came forward as a white hat. We have agreed to a bounty and will cancel all the attacks. investigation and enforcement action are ongoing.”

This defi protocol share

As an earlier Coincu News article updated, on February 10, the DeFi protocol dForce was hit by a quick loan attack, and the attacker made $3.65 million.

Following the thread, dForce stated that the exploiter manipulated the price of wstETH/ETH using a Curve pool reentrancy flaw, resulting in the liquidation of 1,031.42 ETH and 30.31 ETH equivalent of wstETH/ETH Curve LP tokens on Arbitrum and Optimum, respectively. It also produced $2.3 million in protocol debt.

Analysis by PeckShield Inc. about dForce hack

The hack caused around $3.6 million in total damages, according to BlockSec and PeckShield, two top crypto security companies.

A reentrancy vulnerability, which can happen when an attacker repeatedly calls an intelligent contract function and pulls assets from it before the contract updates its internal state, has made the attack possible. This may occur if the smart contract code contains a defect or inadequate security measures are not taken.

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