DeFi hack: DEGO Finance loses over $10M, urges exchanges to stop all deposits

Another day, yet another exploit in the decentralized finance (DeFi) space gets reported.

DeFi has been one of the fastest-growing segments in the crypto space this year. The space also garnered the interest of bad actors, naturally leading close to 200 DeFi hacks throughout the year. Some industry advisors expected it to grow bigger in 2022. This was certainly a worry looking at different exploits in 2022. Here’s another one.

Receiving end

DEGO Finance, a cross-chain DeFi, and NFT tool was exploited on 10 February, draining the network for over $10 million. Different Twitter accounts tweeted the same including the victim as well. It read as:
Post the news, different exchanges such as Binance, Kucoin, and shut all deposits of its native governance and equity token, DEGO. The protocol urged Uniswap, Poloniex, PancakeSwap, WazirX, etc., to do the same to offset the losses. The network further added:

“We’ll keep all stakeholders updated on the latest developments, as well as talk to reputable security teams on how to identify the hacker and retrieve loss. We would ask the hacker to come forward and communicate.”

Peckshield, famed blockchain security and analytics company joined the discussion as well. The series of tweets added that the exploiters withdrew more than $10 million from Dego Finance as well as from GameFi Incubator Cocos-BCX.
Around 13 addresses were drained of funds according to the aforementioned tweet. Some belonged to Binance Smart Chain (BSC), Ethereum, and Cronos. Attacker’s address (0x118…c91) obtained assets worth more than $2.4 million on BSC, more than $4.9 million on ETH. Even assets on Cronos 196,256.723USDT and 199,401.967USDC were exploited.
As part of the next steps, a detailed post mortem report should be available soon. Although, no such confirmation was available. The damage was already done, nevertheless. The native token, DEGO took a huge blow. At the time of writing, the token suffered an 11% correction, was trading at $4.05.
In one of the largest DeFi hacks on 3 February, the decentralized finance (DeFi) platform Wormhole became the victim of the largest cryptocurrency theft this year, and among the top five largest crypto hacks of all time. The attacker exploited a security flaw to make off with close to $325 million.

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