Last year we saw too many hacked DeFi platforms. In a short time, a new $600 million hacking event took place. In addition to all this, it was announced that the Ola Finance platform was hacked today. Vulnerabilities arising in blockchain-based platforms increase the appetite of attackers.
Ola Finance hacked
Credit provider Ola Finance was robbed today by an eccentric break-in. Ola Finance, a platform for creating custom DeFi modules, used the Fuse-based Voltage Finance protocol mechanism. Cybersecurity provider PeckShield explained how attackers drain liquidity. It is emphasized that the first DeFi center on the EVM-compatible Fuse Network (FUSE) blockchain system, Voltage Finance, Ola Finance suffered losses of $ 4 million.
“About 3 hours ago, we became aware of the hacking of the @voltfinance credit platform, as a result of which $4 million was stolen in denominations of $USDC, $FUSD, $BUSD, $WBTC, $WETH and $FUSE.”
According to PeckShield’s analysis, hacking became possible due to the incompatibility of Compound (COMP) forks (Ola Finance allows DeFi companies to create systems similar to Compound) and tokens of a certain standard based on Ethereum.
The ERC677/ERC777 tokens have built-in callback functions that allow attackers to abuse the Ola mechanism to deplete the liquidity pools that are accessed.
Elvis Zhivkovich from the Voltage Finance team said:
“The Voltage Finance DeFi protocol was not used. Ola Finance has been abused. We are partners of Ola and use their platform for lending as a service. Ola Finance is a separate team that does not belong to either Fuseio or Voltage Finance.”
2022 Cryptocurrency Hacking
With mixers like Tornado Cash, attackers can easily launder cryptocurrencies from an attack. Attackers who can move freely thanks to the anonymity provided by cryptocurrencies are particularly targeting DeFi platforms. Newly discovered addresses are blacklisted. Voltage Finance, the operator of USD Coin (USDC) Circle Inc. and CEX teams to blacklist the corresponding addresses in the Ethereum (ETH) blockchain.
The DeFi hacks broke all previous records in terms of stolen assets. Two days ago, the Ronin (RON) Axie Infinity sidechain was hacked, resulting in losses of $625 million. The Ronin (RON) attack has gone down in history as the largest attack in the history of decentralized finance (DeFi).