UwU Lend faces a $3.7 Mln exploit, days after a $20 Mln Exploit

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Key Takeaways

  • The stolen $3.7 million in assets is now present in the hacker’s wallet address after being converted to ether
  •  Many blockchain analysts have attributed both hacks to the same exploiter. 

Leading decentralised lending protocol UwU Lend was exploited for a staggering $3.7 million. The latest development comes 3 days after the firm faced a $20 Million exploit.

Many blockchain analysts have attributed both hacks to the same exploiter. As per reports, the stolen $3.7 million in assets currently sits in the hacker’s wallet address after being converted to ether. The recent actions of the attacker, as observed by Beosin Trace, indicate that the stolen funds have been fully converted into ETH and stored in two different addresses. 

Blockchain analytics firm Beosin noted that the first $20 Million exploit was a flash loan exploit that manipulated the price oracles of sUSDe stablecoin on the platform. The hacker first used a flash loan to swap USDe for other tokens, which led to a decline in the price of $USDe and $sUSDe. Following this, the hacker deposited some to UwU Lend and lent more $sUSDe than expected, driving the $USDe price higher.

The protocol has stated that the first exploit was unique to the sUSDe market oracle and has now been resolved. Unfortunately, the second exploit struck the platform just hours after the firm started the reimbursement process.

The Defi Protocol took to X(formerly Twitter) to reveal that they had repaid all bad debt for the $wETH market, which was around 481.36 $wETH ($1,734,042). The protocol reimbursed a total of $9,715,288 from its first exploit. The protocol has yet to comment on or offer an explanation about its second exploit

Defi firms have been subjected to several hacks in recent months. Earlier this month, DMM Bitcoin, one of Japan’s largest crypto exchanges faced a security breach resulting in losses exceeding $300 million.

A recent Peckshield report has revealed that over $574 million worth of digital assets were lost across 30 individual crypto hacks during May 2024, representing a 666% month-over-month increase. In the first quarter of 2024, hackers stole digital assets valued at $542.7 million, a 42% increase compared to the same period in 2023.

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Saniya Raahath
Saniya Raahath

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