UwU Lend, created by infamous fraudster Michael Patryn (a.ok.a. 0xSifu) has been hacked for nearly $20 million, in response to an alert by blockchain safety agency Cyvers.
An preliminary publish on X (previously Twitter) drew consideration to $14 million price of losses earlier than Cyvers recognized additional losses, totaling $19.5 million price of crypto belongings.
The assault transactions present the usage of ‘flash loans’ which can be utilized to control asset costs on decentralized finance (DeFi) apps. Audit agency Peckshield famous that, on this case, 5 stablecoin pairs have been focused so as to affect the sUSDe price feed, or ‘oracle.’
UwU Lend is a ‘fork’ of DeFi’s premier lending protocol Aave, particularly its v2 codebase. In November, Aave alerted the group to a bug discovered within the v2 code which was later remediated by disabling steady borrow charges.
The protocol was paused shortly after the assault, in response to the official UwU Lend X account.
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Stolen funds embody USDC, FRAX, crvUSD and blUSD. These have been transformed to ETH earlier than being consolidated in a brand new tackle which at the moment holds over 4000 ETH ($15 million). The hacker was funded two days in the past through the sanctioned crypto mixing service Twister Money.
Among the many customers affected by the hack was Curve Finance founder Michael Egorov. UwU Lend is considered one of a number of platforms he makes use of to borrow stablecoins in opposition to his personal CRV holdings. The price of CRV has dropped round 5% because the hack, in response to information from CoinMarketCap.
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Patryn was revealed to be behind the pseudonym 0xSifu by on-chain detective ZachXBT in February of 2022. Beforehand, he had co-founded the Canadian crypto trade QuadrigaCX, which misplaced 9 figures of consumer funds in 2019.
Since then, Patryn had labored alongside Daniele Sestagalli, constructing a DeFi empire referred to as ‘Frog Nation.’ The initiatives included Magic Web Cash, Wonderland, and Abracadabra, which was itself hacked for $6.5 million earlier this yr.
Over the previous week, Ethereum L2 Loopring reported a compromise of its ‘smart wallet’ 2FA system, touchdown a hacker $5 million price of ETH, and crypto trade Lykke was reportedly hacked for $19.5 million of BTC and ETH.
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