DeFi-project DFX Finance hacked for $ 7.5 million

The Ethereum-based decentralized exchange DFX Finance, focused on stablecoins, lost digital assets worth approximately $7.5 million as a result of the attack.

PeckShield experts noted that hacking became possible due to “the lack of proper protection against re-entry.”

The DeFi Protocol team confirmed the incident:

“We were notified of suspicious activity 20-30 minutes after the first transaction, and we suspended all DFX smart contracts within a few minutes after the attack was confirmed,” the developers said.

According to BlockSec experts, the attacker used flash loans to empty liquidity pools, The Block reports. He converted the stolen tokens into ETH and withdrew a cryptocurrency worth about $4.3 million.

The same assessment was given in PeckShield, noting that the hacker sends funds to the Tornado Cash mixer.

The remaining tokens worth $3.2 million were intercepted by a MEV bot during the so-called “sandwich attack” – an advanced transaction.

The protocol team called on the bot operator to contact through social media channels to discuss asset recovery

Against the background of the incident, the price of the DFX Finance token (DFX) collapsed almost twice at the moment from the levels of about $ 0.3. After the correction, the coin is trading near $0.18, according to DEX Screener. This is more than 99% lower than the maximum recorded in May 2021 (CoinGecko). The market capitalization of DFX is about $4.18 million.