DFX Finance Hacked, Warns Polygon LP Holders to Withdraw Funds |#cyberattack | #hacker |
Digital Futures Exchange Finance also known as DFX Finance lost crypto tokens worth $7.5 million due to a cyberattack.
The project confirmed the cyberattack on Twitter saying they noticed suspicious activities happening in DFX contracts on Thursday. They explained that they paused all DFX contracts a few minutes after confirming the cyberattack through the hacker’s suspicious first transaction.
DFX Finance Traced Funds
DFX Finance was able to trace the funds and address of the hacker. They noticed the attacker converting the stolen funds to Ethereum (ETH) and moving it to Tornado Cash. The stolen funds were bridged to Polygon after the attacker failed to convert New Zealand Dollar Stablecoin (NZDS) to Ethereum.
Petrie, a Canadian stablecoin market, froze the Canadian Dollar-pegged (CADC) within the hacker’s wallet. Blockchain security firm, Blocksec experts, said the attacker used flash loans to empty liquidity pools. They successfully withdrew $4.3 million in digital assets after converting the tokens to ETH.
DFX Finance stated they took swift action in pausing the contracts, therefore, preventing the hackers from entering the Polygon Pool. Although they did not disclose what caused the breach, they stated that Polygon contracts were vulnerable to the same attack.
Polygon LP Holders at Risk
They warned Polygon LP holders to withdraw their funds from their respective DFX pools when the withdrawal-only feature is activated.
According to the Twitter thread, a Maximal Extractable Value (MEV) bot was able to gain a large sum of the stolen funds in the process of the cyberattack. DFX Finance is urging the MEV bot owner to contact them on social media to regain some of the funds.
Additionally, no hacker claimed responsibility for the cyberattack. The project claimed they are currently analyzing the cyberattack and will update the public on the findings.
It was reported that Binance Smart Chain had suffered a massive cyberattack losing about 2 million BNB (approximately $570 million) to hackers. On October 6th, Binance Smart Chain (BSC) announced the suspension of its operations. The BNB team said they were working with blockchain security firms in tracking and recovering the stolen tokens.
