Crypto News: DEUS Finance Loses Over $6 Million in Latest Hack, Raising Concerns About Platform Securit
DEUS Finance, a decentralized finance (DeFi) platform, has lost over $6 million worth of its stablecoin, DEI, in a recent hack. The breach targeted two networks, Binance Smart Chain and Ethereum layer-2 solution Arbitrum, resulting in a loss of $1.3 million on BSC and $5 million on Arbitrum.
According to blockchain security firm PeckShield, a bot was involved in the hack and compromised the ARB/ETH deployments.
White-hat hackers identified a vulnerability in the DEI smart contract that allowed anyone to mint new DEI without any control. Exploiting this loophole, the hackers attempted to drain DEI from the affected networks. DEUS Finance responded quickly, and the affected contracts were suspended and subsequently destroyed to mitigate losses.
This isn’t the first time DEUS Finance has experienced a hack. Previously, freeloaders used flash loans to trick the smart contract data reading format, resulting in a loss of $13.4 million and $3 million, respectively.
The DEI stablecoin has also experienced setbacks, de-pegging and falling to as low as $0.28 after a 71% decline following the hack. The coin had previously dropped to $0.59 due to the direct effects of the LUNA-UST collapse last year.
These incidents have raised questions about DEUS Finance’s ability to safeguard user assets and maintain trust. Despite the setbacks, the DEUS Finance team expressed appreciation for the white-hat hackers’ fast response and efforts to minimize losses.
The platform’s history of previous hacks and setbacks to the DEI stablecoin has raised concerns about its security and ability to protect user assets.
Related News: AnubisDAO Scammer Strikes Again
