Hacking incidents are seemingly endless in the cryptocurrency market. At this point, another cryptocurrency project has been hacked.
Accordingly, Ethereum (ETH)-based DeFi protocol Yearn Finance (YFI) lost millions of dollars as a result of an attack targeting its yETH liquidity pool.
Cryptocurrency detective PeckShield Alert noted that the Yearn Finance attacker minted a nearly infinite amount of yETH tokens in a single transaction, depleting the pool’s assets in one go.
Accordingly, the attacker exploited a vulnerability that allowed for unlimited minting of the yETH token, which drained the protocol’s LST pools.
According to PeckShieldAlert’s post, the attacker sent approximately 1000 ETH (approximately $3 million) to Tornado Cash, while the attacker address (0xa80d…c822) currently holds approximately $6 million worth of crypto assets.
While Finance noted that “V2 and V3 vaults were not affected,” the attack has revived concerns about vulnerabilities across DeFi in general.
The Yearn hack comes just days after South Korea’s leading cryptocurrency exchange Upbit suffered a multi-million dollar attack.
Yeran Finance (YFI) fell by 6% in the last 24 hours due to the hacking incident and the general market decline.
*This is not investment advice.