The Optimism-Based Exactly Protocol has been targeted by hackers, resulting in the draining of more than $12 million worth of Ether. This incident has once again brought to the forefront the pressing issue of cybersecurity within the cryptocurrency space and the susceptibility of decentralized platforms to malicious attacks.
Exactly Protocol Exploited, TVL Plunges, and EXA Token Slumps
The decentralized credit market Exactly Protocol faced a breach on August 18th, resulting in a significant drop in the total value locked (TVL) within the platform. This incident led to a considerable decline in the recently-announced native token, EXA, which plummeted by over 27% in a single day.
Early Alert and Escalating Losses
Blockchain security company PechShield was the first to notify Exactly Protocol about the attack and issued alerts to users, urging them to take necessary precautions. Initial investigations indicated a loss of 4,300 ETH, approximately $7.3 million.
However, De.Fi, a Web3 antivirus platform, later revealed an update indicating that the protocol had suffered an even more substantial loss of over 7,160 ETH, valued at nearly $12.04 million.
Exploitation Strategy and Investigation
Preliminary findings from the security firm suggested an exploitation strategy involving the funding of an exploiter contract on the Ethereum network. Funds were then transferred to the layer-2 blockchain, Optimism, before ultimately being bridged back to Ethereum.
Although Exactly Protocol has yet to officially confirm the attack, it acknowledged the security issue and temporarily halted the platform. Users, however, retain the ability to withdraw their assets. The official statement from the protocol noted,
“We’re actively investigating a security issue within our protocol. To ensure user safety, the protocol is temporarily paused (you can still withdraw assets). Our team is on top of this and will share more details asap.”
TVL Plummet and Broader DeFi Exploitations
Following the breach, data from DeFiLlama illustrated a drastic drop in the total value locked within Exactly Protocol, falling from $37 million to $11.74 million. This marked a staggering decline of nearly 70%.
These events unfold in a landscape of widespread security breaches within the DeFi sector. Earlier in the month, the Solana-based DEX Cypher Protocol was hacked, leading to exploiters gaining nearly $1 million in crypto-assets.
While law enforcement agencies issued seizure warrants and centralized exchanges collaborated to freeze over half of the stolen funds, not all exploits have ended as positively. The recent case of the Zunami Protocol saw losses exceeding $2 million due to price manipulation facilitated through donations to the protocol.
Protocol Hack and Subsequent Ether Loss
The attack on the Optimism-Based Exactly Protocol led to a staggering loss of funds, with hackers managing to siphon off Ether equivalent to over $12 million. Further, this unauthorized access to funds has prompted an immediate response from the protocol’s development team and the broader cryptocurrency community.
Moreover, news of the hack has sent shockwaves throughout the cryptocurrency landscape, emphasizing the need for stringent security measures and constant vigilance in an environment where digital assets are becoming increasingly attractive targets for cybercriminals.
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