UwU Lend, a decentralized lending platform, has develop into the newest sufferer of a malicious hack. Based on the blockchain safety agency, Arkham, the lending protocol noticed $19.3 million stolen by unhealthy actors.
Though the reason for the hack is but to be recognized, some customers declare that the challenge’s founder is the one behind the assault.
UwU Lend Loses $19.3M
UwU Lend was forked from the open-source codes for AAVE v2, an Ethereum-based lending protocol. It gives a cohort of providers, comparable to lending, borrowing, and staking. Customers are supplied 100% of revenues generated by the platform, that are issued as a revenue-sharing token referred to as UwU.
Based on its official web site, UwU Lend claims to have by no means been hacked since its inception in 2022. Nonetheless, it joins lengthy listing of hacks swamping the DeFi sector.
On-chain information reveals the unhealthy actor transporting the stolen funds throughout a number of pockets addresses. A crypto consumer who reported the exploit on the blockchain explorer Etherscan said that the unhealthy actor used Curve LlamaLend as “exit liquidity” for the assault.
On the time of writing, UwU Lend’s developer crew acknowledged the assault and reassured customers that actions have been being carried out to retrieve the stolen funds.
“The protocol was paused a little under an hour ago while the team investigates the situation. Please rest assured that we were made aware of the situation immediately and are taking all necessary steps, doing our best here. Stay tuned for further updates,” the challenge’s crew wrote.
Insider Job?
With no autopsy report figuring out the reason for the assault, some customers have accused the challenge’s founder because the brains behind the exploit.
Michael Patryn, the co-founder of a collapsed Canadian crypto trade referred to as QuadrigaCX, launched UwU Lend in September 2022. He was additionally caught transferring thousands and thousands of {dollars} price of ETH from Wonderland DAO, the place he served as treasurer. Together with his reappearance as UwU’s crew lead, Patryn is recognized by a moniker, Sifu.
As a consequence of his tough previous, some group members are suspicious that Sifu could also be behind the funds’ loss. Nonetheless, there isn’t any proof to again these claims.