Nearly $20 Million Platform Loss Is Caused by UwU Lend Exploit

  • Cyvers identified the UwU Lend exploit on Monday, June 10, which resulted in the loss of about $20 million.
  • The fact that UwU Lend has not yet addressed the nature of the hack raises concerns regarding security protocols and response tactics.

A severe attack that targeted the UwU Lend protocol on Monday, June 10, resulted in the loss of about $20 million in an ongoing cryptocurrency exploit.

UwU Lend Steal $20 Million in order to exploit

The UwU Lend vulnerability was originally discovered by Cyvers, an on-chain security company. The platform is still under attack from attackers in spite of their alert.

UwU Lend, a decentralized finance (DeFi) protocol that serves as a digital asset liquidity market, has not yet made the details of the hack public.

The anonymous hacker stole nearly $20 million through three fraudulent transactions within an hour of Cyvers’ warning. Tornado Cash, a cryptocurrency mixing mechanism, is said to have provided the cash for the theft.

The UwU Lend hack is the latest in a string of security lapses that have beset the cryptocurrency world in the last year, causing substantial money losses and emphasizing the critical requirement for strong security measures within DeFi platforms.

Increased Crypto Theft and Security Vulnerabilities in DeFi

A new analysis from Immunefi claims that up until May 2024, the cryptocurrency market lost almost $473.22 million due to 108 events. The rise in funds obtained through theft can be ascribed to the rising value of cryptocurrencies, which in turn draws in more unscrupulous individuals.

A related development was the successful freezing and repatriation of $5.7 million by the Norwegian government in connection with a well-publicized cyberattack on the Ethereum sidechain Ronin network, which was embedded into the web3 game Axie Infinity.

The attack, which took place in March 2022, was the biggest DeFi exploit to date, with losses totaling over $600 million.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Lalit Mohan

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