DEUS Stablecoin DEI Hacked, Damage Over 650 Million Yen

Attack on Deus Finance

DeFi (decentralized finance) protocol Deus Finance was hacked on the 5th. The amount of damage on Arbitrum, L2 of Ethereum, exceeded about 650 million yen ($5 million), while about 170 million yen ($1.3 million) was illegally leaked from the BNB chain. The crypto asset (virtual currency) stolen in both cases is the DEI stablecoin issued by DEUS.

In addition, it seems that white hackers have recovered some funds on the BNB chain and returned some funds to DeusDao. It seems that the Front Rambot, which preempts hacker transactions by paying high gas prices, was activated.

Hi @DeusDao: it appears to be a pubic burn vulnerability with loss > $1.3M alone at BSC.

The BSC hack was successfully frontrun by a bot: https://t.co/hXskQOIfwV

The DEI token @ BSC was upgraded on Apr-10-2023 https://t.co/QJHwnZaXMk pic.twitter.com/C51CnVsg1B

— PeckShield Inc. (@peckshield) May 5, 2023

According to blockchain security firm Packshield, the main culprit is related to a bug in the burn function. Because the order of the account granting permission (sender) and the account receiving permission (owner) were reversed, anyone could burn or steal someone else’s token.

What is Burn

Burning is the act of reducing the number of cryptocurrencies issued. In this case, it was done to prevent illegally obtained tokens from circulating and to minimize the impact on token value and project credibility.

Cryptocurrency Glossary

DEUS response

DEUS has announced that it has suspended related contracts and, with the help of white hats, has burned DEIs in circulation to prevent further abuse. DEUS thanked the ethical hackers who rescued the funds from the DEI exploit, and urged ethical hackers who have not yet contacted them to get in touch with them.

For all white hackers that were able to rescue funds during the DEI exploit from today 05/05/2023
We are confirming 0x7f5ae1dc8d2b5d599409c57978d21cf596d37996
As a DEUS team owned multisig on Arbitrum.
Please get in touch with us if you have not already. https://t.co/7w5y6Nh2EM

—DEUS (@DeusDao) May 5, 2023

DEUS Finance uses its own token “DEUS” issuance and burning mechanism to bring the price of the stablecoin DEI close to $1.

The protocol has been hacked twice in the past. All of them were manipulated by price oracles using flash loans, and about $3 million in DAI and ETH were stolen in March 2022. In April of the same year, approximately $13.4 million was stolen from the DEI. At the time, DEUS Finance had announced that it would repay the stolen assets to its clients.

What is white hacker

A person who uses knowledge and technology for good ends, such as dealing with cybercrime. Counter cybercrime by black hackers and improve information security for companies and countries.

Cryptocurrency Glossary

connection:Hacking damage of over 1.6 billion yen in multiple DeFi protocols such as Deus Finance

The post DEUS Stablecoin DEI Hacked, Damage Over 650 Million Yen appeared first on Our Bitcoin News.