On June 10, the onchain intelligence platform Arkham revealed that the decentralized finance ( defi) protocol Uwu Lend may have experienced a potential exploit. Arkham and Cyvers reported that more than $19 million had been siphoned from the lending protocol.
Onchain Alerts Uncover $19 Million Siphoned From Defi Protocol Uwu Lend
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Over $19M Drained From Uwu Lend
The defi lending platform Uwu Lend is believed to have been exploited, as Arkham, an onchain intelligence company, informed the community of a possible security breach. Arkham mentioned that $19.3 million was extracted from the protocol and provided explorer links to the address and exploit transaction.
Uwu Lend’s protocol is essentially a fork of Aave’s protocol and launched on Sept. 21, 2022. The defi platform was created by Michael Patryn, the co-founder of the now-defunct Canadian crypto exchange QuadrigaCX, who is known by the pseudonym “Sifu.” Patryn has had a controversial history in the crypto industry.
Real-time security alerts from the Cyvers platform also notified the crypto community about Uwu Lend’s issues. “Our system has detected a series of suspicious transactions involving [Uwu Lend]. [The] attacker has executed 3 transactions and was able to get around $19.5M,” Cyvers wrote. “But [the] hack is still ongoing! [The] amount might increase. Right now [the] attacker is swapping stolen digital assets to [ethereum].”
Cyvers further noted that the attacker was funded by Tornado Cash two days ago. “Our system has detected the malicious contract deployment before the hack transactions,” Cyvers explained. The security firm insisted that the company’s security systems “could have saved the all funds for [Uwu Lend].”
What do you think about the $19 million siphoned from Uwu Lend? Share your thoughts and opinions about this subject in the comments section below.
