Deus Finance, a decentralised finance (DeFi) protocol lost over $6 million for a security breach in its stablecoin DEI (DEI) system, stated Cointelegraph. With insights from PeckShield, a blockchain security platform, on May 5, 2023, a hacker made use of the BNB Smart Chain (BSC) for illegal activities.
Sources revealed that the hack in the BNB Smart Chain was done with the help of a bot and over $1.3 million was lost. It is also expected that the hacker also attacked the Arbitrum network, resulting in the loss of ARB/ETH deployments amounting to over $5 million. Supposedly, Twitter users mentioned that the reason behind this attack could be the basic implementation error in the contract of the token, added Cointelegraph.
As reported by Cointelegraph, the protocol agreed to the incident and has stopped all contracts by destroying all DEI tokens and avoid future damages. “We are currently in the process of comprehending the actual backing of DEI tokens,” the Deus team tweeted. Furthermore, a “comprehensive recovery and redemption plan,” will be made after a full analysis of the incident, Deus Finance added further, Cointelegraph concluded.
(With insights from Cointelegraph)