Published on mei 17, 2024, 12:28 am
Image source: Fox News
```json { "TLDR": "Sonne Finance, a crypto lending platform, was hacked losing $20 million in cryptocurrencies like WETH and USDC. They are working to recover the stolen funds but negotiations with the hacker are tough. The hacker has already moved a significant amount of the funds to another wallet address. A similar incident also affected BlockTower Capital leading to partial asset loss. These events highlight the importance of strong security measures in the cryptocurrency space." } ```
Sonne Finance, a lending protocol in the cryptocurrency market, experienced a major setback recently due to a hack that resulted in the loss of $20 million in various cryptocurrencies such as WETH and USDC. The incident occurred on May 14, attracting the attention of web3 security firm Cyvers who noticed an ongoing attack on Sonne Finance’s USD Coin (USDC) and Wrapped Ether (WETH) contracts.
Although Sonne Finance was quick to react once alerted about the breach approximately 25 minutes later, the hacker had already made away with $20 million in several digital assets like Velo (VELO), soVELO, and Wrapped USDC (USDC.e). In response to this crisis, Sonne Finance decided to halt all Optimism markets in collaboration with Cyvers as they delved deeper into the matter.
Efforts are currently underway to recover the stolen funds, with talks about potentially engaging in a bug bounty program with the hacker. It’s worth noting that in similar cases, hackers often return most of the funds while keeping around 10% as an incentive for discovering security vulnerabilities. However, it appears that negotiations with this particular hacker are difficult as they have already transferred a significant portion of the loot to another wallet address.
The hacker proceeded to swap assets like WBTC for Ether (ETH) and Dai (DAI), indicating an intention to obscure traces through protocols like Tornado Cash. Upon investigation into Sonne Finance’s system after the attack, it was found that a donation attack exploited vulnerabilities within their Compound v2 forks.
In a parallel development, BlockTower Capital’s main hedge fund has also fallen victim to exploitation leading to partial asset depletion. Despite efforts by blockchain forensic analysts engaged by BlockTower Capital, recovery attempts have not been successful thus far. Additionally, there have been reports of similar incidents involving BlockTower Capital back in February 2023 when substantial losses were incurred due to exploits on multichain exchange aggregator Dexible.
This series of unfortunate events serves as a stark reminder of the potential risks and vulnerabilities present within the cryptocurrency space. As investigations continue and efforts are made towards recovery, industry players emphasize the importance of robust security measures and proactive risk management strategies to safeguard digital assets against malicious actors.
In light of these recent breaches, stakeholders within the cryptocurrency ecosystem are advised to remain vigilant and prioritize cybersecurity practices to mitigate such threats effectively.
Original article posted by Fox News
