In a recent hacking incident involving the decentralized finance (DeFi) protocol, Curve Finance, an ethical hacker successfully reclaimed approximately 2,879 Ether (ETH), equivalent to around $5.4 million, from a hacker.
Curve Finance experienced an exploit of several stablepools due to malfunctioning reentrancy locks in certain versions of the Vyper programming language on July 30.
The damages Curve Finance faced are speculated to be around $47 million.
Simultaneously, other DeFi protocols that were utilizing the susceptible versions of Vyper were exploited as well, posing a significant challenge to the DeFi ecosystem.
Identified as “c0ffeebabe.eth”, an operator of a maximal extractable value bot, used a front-running bot against the malevolent hacker, securing nearly 3,000 ETH. These reclaimed funds were returned to the Curve deployer address, the expected rightful holder.
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In the aftermath of this incident, fraudulent refund schemes are being propagated on Twitter.
Impersonators of Curve Finance and victims of the hack are advocating a counterfeit refund scheme, aiming at those who already suffered losses due to the hack. Curve Finance’s official account has yet to discuss a refund plan.
Simultaneously, BNB Smart Chain has encountered similar attacks due to the Vyper vulnerability, as shared by BlockSec, a blockchain security firm. An approximate amount of $73,000 was stolen in three different exploits.
In related news, the U.S. Securities and Exchange Commission has enforced new regulations for cybersecurity incidents involving publicly-traded U.S. companies.
These rules mandate disclosure of a cyberattack four days after it’s deemed “material” and also periodic reporting on policies to manage and identify cybersecurity risks.
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