DeFi platforms are continuously attacked
At least four DeFi decentralized platforms were attacked in just a few weeks, with losses ranging
Speaking to CoinTelegraph, Li Finance CEO Philipp Zentner admitted his platform was hacked. As soon as a compromise is detected, the system closes all swap functions to prevent further damage. Currently, Zentner engineers are working on fixing the problem and patching the vulnerability. The company also contacted the victims to negotiate compensation.
Li Finance is currently a protocol that aggregates cross-chain liquidity and swaps. The company is also building a critical piece of infrastructure for value building and decentralized applications on the blockchain.
Li Finance's incident only occurred a week after two other DeFi platforms were attacked by hackers and Agave - a Gnosis on-chain lending application belonging to the Aave protocol; and Hundred Finance - a multi-chain lending project and an arm of Compound specializing in open financial applications. On March 14, both announced their systems were attacked in the form of "re-entrancy" fast loans.
Fortune said that the above platforms have vulnerabilities that allow hackers to penetrate and deploy fake smart contracts. With this contract, crooks can "turn around" to borrow repeatedly with only a single collateral. In the end, they will withdraw all the borrowed money and leave the victims with a huge debt.