HomeNEWSInverse Finance suffers flash loan attack, loses $1.2 million

Inverse Finance suffers flash loan attack, loses $1.2 million

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Renowned decentralized finance, Inverse Finance has been a victim of a security glitch today. According to a notification by a leading blockchain firm, PeckShield, the firm lost about $1.2 million to the attack.

According to the report, the attacker initiated a flash loan raid using 27, 000 BTC. At the end, the hacker made way with about 53 BTC and 100,000 UST. Further diagnosis into the attack indicates that the hacker moved the tokens to Tornado Cash.

Also, PeckShield revealed that the hacker attacked by manipulating the price oracle, by using the assets in the pool to sum the price of the LP coins. Confirming the attack, Inverse Finance revealed that it has commence findings into the exploitation. Further details confirmed the suspension of loans till the conclusion of the investigation.

In a good will, DeFi and other crypto lending platform initiated Flash loans to encourage startups and support traders. However, mischievous individuals now bank on the privilege to cart away fortunes.

Furthermore, in most cases relating to hacking on DeFi tools like Blender and Tornado cash are often at the mercy of hackers. They’ve overtly employed these tools to exploit different DeFi(s). Thus attracting the attention of the U.S Treasury Department’s Office of Foreign Control. Last April, the OFAC placed a ban on Blender for contributing to the exploitation of Axie Infinity.

Roles of Bender, Tornado Cash towards attack on DeFi(s) and recently Inverse Finance

Meanwhile, Tornado Cash hasn’t encountered such fate but the recent development will further call attention to it. Nevertheless, the firm has emphasized its corporation with relevant authorities towards protecting corporate and individual assets. To further show its support, Tornado cash embarked on a mass blockade of some wallets on the black list of the OFAC.

Notably, there are more developments to surface, the recent attack is likely to have an impact on the future of Tornado Cash. From another perspective, it’s very likely the reported loss is more severe than what we have now. Investigation from inverse finance will further confirm other notable details.

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