On June 10, Arkham Intelligence analysts warned about a possible hack of the UwU Lend liquidity DeFi protocol. Preliminary damage was estimated at $19.3 million.
ALERT: Possible exploit on Uwulend🚨🚨
$19.3M removed so far.
Address:https://t.co/mDU0WTbE7S pic.twitter.com/Bx7cLbkrqE
According to Cyvers Alerts researchers, the hacker withdrew funds in three transactions and has already started converting assets into ETH.
🚨ALERT🚨Our system has detected a series of suspicious transactions involving @UwU_Lend!
Attacker has executed 3 transactions and was able to get around $19.5M. But hack is still ongoing! Amount might increase. Right now attacker is swapping stolen digital assets to $ETH.… https://t.co/8cAB2NWwKV pic.twitter.com/V2RrqYagD2
Two days before the incident, he interacted with the Tornado Cash mixer to finance the hack. At the same time, the Cyvers analysis system detected the deployment of a malicious contract before the funds were moved.
Representatives of UwU Lend responded to the warnings about two hours after the attack began and announced the suspension of the protocol.
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.
— UwU Lend (@UwU_Lend) June 10, 2024"Rest assured, we are immediately informed of the situation and we are taking all necessary measures and efforts. Stay tuned for further updates," the publication says.
According to journalist Colin Wu, UwU Lend was launched by the co-founder of the closed QuadrigaCX crypto exchange, Michael Patrin, known under the pseudonym 0xSifu.
The project is a fork of Aave and supports lending in the algorithmic MIM stablecoin.
Recall that in early summer, the Velocore decentralized exchange was attacked. The hacker withdrew approximately $6.8 million in Ethereum from the pools in the Linea and zkSyncEra L2 networks.
In May, the Japanese crypto exchange DMM Bitcoin lost $305 million in a hack. The platform intends to attract financial support to compensate users.