Cryptocurrencies

Origin protocol loses $ 7 million in hack – Cryptocurrencies

Internet crime and electronic banking security

When will DeFi players finally decide to opt for the best technology that would protect their protocols from a hack? Origin Dollar (OUSD) suffered an attack resulting in a loss of $ 7 million. The hacker would not have wasted his time laundering his loot.


A stablecoin in free fall

The stablecoin project Origin Dollar (OUSD) was the victim of a re-entrancy attack on November 17, 2020.

TheOUSD is a yield farming token guaranteed by deposits in Tether (USDT), in USD Coin (USDC) and in DAI.

The hack resulted in a loss of $ 7 million, of which $ 1 million came from deposits made by the founders ofOrigin and their employees.

The team suspended deposit operations as the project’s native token lost 85% of its value according to CoinGecko.

Origin recommended that users refrain from purchasingOUSD sure Uniswap (UNITED) and Sushiwap (SUSHI), explaining that the prices did not reflect the value of the assets underlying the token.

In the hours following the attack, the founder of the protocol, Matthew liu, assured that his team was doing everything possible to determine the source of the vulnerability.

And 5 in the DeFi !

A press release fromOrigin explained that the attack would have used both a flash loan and loopholes in the smart contracts of theOUSD to start a rebase.

The latter would have artificially inflated the supply of tokens OUSD, allowing hackers to exchange newly forged tokens on SushiSwap and Uniswap against Tether.

The manager of Hex Personal-Financial.com, Nick chong, revealed that the hacker would proceed to launder funds thanks to the protocol RenBTC.

DeFi is now the favorite target of hackers: it is indeed the 5th major attack on a DeFi protocol in less than a month later Harvest, Arkopolis, Value DeFi and CheeseBank.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Isn’t decentralization supposed to increase the level of security of DeFi protocols? 5 hacks in 1 month with flaws almost systematically exploiting flash loans and flaws in smart contracts: DeFi mainly benefits hackers who seem to have found the right recipe. The boom in the sector in summer 2020 – followed by a slowdown from September 2020 – shows not only a bubble which is “deflating” – “Explode” might be too strong – and a rush of DeFi entrepreneurs who have forgotten an essential rule in finance: safety above all!

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