Curve Finance Losses $47 Million in Hack, CRV Declines by 13%

• Curve Finance experienced an exploit due to a glitch in the programming language Vyper.
• The exploit resulted in a loss of about $47 million and a subsequent fall in Curve’s native token CRV.
• While CRV experienced a decline of 13%, other major cryptocurrencies, including BTC and Ether, also exhibited a plunge.

Curve Finance, a prominent decentralized finance (DeFi) protocol, experienced a massive exploit, leading to a loss of more than $47 million and further to the fall of its native cryptocurrency, Curve DAO (CRV). As per a Twitter thread shared by the platform on July 30, a glitch in a particular version of Vyper, the platform’s programming language, has resulted in the exploitation of a number of stable pools, including alETH/msETH/pETH.

Subsequent to the attack, Vyper explained on Twitter that the versions, including 0.2.15, 0.2.16, and 0.3.0, are “vulnerable to malfunctioning reentrancy locks.” The EVM programming language further clarified that the investigation is going on and warned users who rely on those versions to immediately reach the team. Though Curve founder Michael Egorov was reluctant to respond to the report, the team assured, “We are assessing the situation and will update the community as things develop.”

A recent Bloomberg report revealed that Curve’s native token had exhibited a heavy fall of around 13% following the platform’s exploit. Currently trading at a price of $0.64428, CRV holds a 24-hour trading volume of $284,113,772 and a market cap of $572,992,241, ranking 68.

The report also shed light on the comments put forward by Tarun Chitra, founder and CEO of Gauntlet, the crypto risk modeling firm, who pointed out that the hacker stole almost $20 million of CRV and a version of Ether. According to the findings of the blockchain sleuth BlockSec, the protocol hack has already led to a loss of more than $40 million by that time. The researcher added:

Please note that this reentrancy issue is associated with the use of ‘use_eth’, which could potentially place the WETH-related pools in jeopardy!

Other major cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), are also found to exhibit a downward trajectory subsequent to the Curve hack. BTC, the largest cryptocurrency by market cap, currently trading at a price of $29,380.55, showed a decline of 0.53% yesterday, reaching $29,106 from $29,353. Similarly, the second largest coin, ETH, fell by 0.59% in the last 24 hours.