Decentralized Finance faces another blow as lending protocol suffers attack leading to website shutdown.

Recently, a lending protocol under a Decentralized Finance and currency protocol platform was attacked, forcing its website to shut down. Security experts analyze that the method of this attack is similar to a previous attack on a certain DEX, and it may be the work of the same group of Hackers. Currently, the team of the attacked platform is conducting an in-depth investigation into the details of the incident.

On-chain data shows that the attacker has transferred the acquired assets to two mainstream DeFi platforms. According to statistics, the locked amount of the attacked platform has plummeted by 99.9% within 24 hours, suffering a heavy blow.

The day before, hackers exploited a compatibility vulnerability between a certain DEX and the ERC777 token standard, conducting ETH and imBTC trades, and achieved a reentrancy attack through multiple iterative calls to the tokensToSend function in ERC777. According to security agency analysis, the DEX lost 1,278 ETH in this attack, equivalent to about $220,000. Additionally, approximately 18.37 imBTC were acquired at a low price for arbitrage by two addresses.

These two incidents have once again raised industry concerns about the security of DeFi. With the rapid development of the DeFi ecosystem, how to effectively prevent various security risks and protect user asset security has become an important issue that needs to be addressed urgently. Development teams need to pay more attention to the security audits of smart contracts, while users should also increase their risk awareness and participate cautiously in various DeFi projects.