Based on the DeFi FTM protocol, Grim Finance suffered heavy losses from a cyber attack that cost FTM tokens worth around $30 million. Minutes has notified USDC, AnySwap and DAI to help them suspend further withdrawals once the investigation is underway.
The project announced its misfortune via tweet at DEC. 19.2021 to declare that they suffered heavy losses from cyber criminals. They also said they had reached out to several professional support teams to freeze further withdrawals. But scammers may already be sending their loot via stablecoin transfer.
Grim Finance reports hacking losses of around $30 million
Grim Finance is a profitability protocol based on the FTM blockchain. This allows the user to bet their FTM on Grim Vults and farm produce. They also offer higher income for consumers who repackage their stock. The protocol is the DeFi project, one of the latest developments in the crypto space.
The ease with which consumers play on Grim Finance is high, attracting over $100 million
TVL according to DeFiLlama. This treasure was safe until yesterday, before the release of the minutes. A cyber hacker took advantage of the protocol system and stole around $30 million worth of tokens. However, the platform reported the crash six hours later via Twitter.
The attacker reportedly used the re-entry method to exploit the network and steal tokens. This method of unauthorized entry is common in Solidity, the code that manages the FTM and ETH chains. The technique is that hackers manipulate the network to enter into unauthorized contracts and gain control of available assets.
The cheater(s)’ prey appears to have been washed out with other FTM-DEXs such as SpookySwap. According to FTM researchers, scammers may have traded the loot for stablecoins. The attack resulted in a massive exit from the logs by investors, leaving only $4.3 million in TVL, an 84% drop.
Crypto attacks on cryptocurrencies increased by the end of the year
Grim Finance is one of a long list of crypto projects targeted by cyberattacks this month. Other projects like Ascend Ex, Bitmart and Badger DAO also lost lucky tokens this month alone.
Ascend Ex lost more than $80 million on a plan that runs three blockchains. The exchange announced that hackers had broken through the firewall and seized the loot in the form of tokens. Bitmart also lost about $200 million to the hack, including running the BSC and ETH chains. However, the exchange promised to recover all stolen property of its users.
Throughout the year, these attacks have increased in recent months. Since this attack is quite degrading, investors can only hope that developers get an incentive to come up with better solutions.