Another DeFi attack! DeFi lending platform Sentiment lost over $1 million in attack

SNEAK PEEK

• Sentiment has lost over $1 million in a decentralized finance reentrancy attack on April 4.
• A fix has been issued by the team who is also working to recover the funds.
• The attack is an add-on to this year’s attacks on DeFi market.

Sentiment, a DeFi lending platform, became the victim of a reentrancy attack on Tuesday, i.e. April 4. Reportedly, the attacker got hands on over $1 million; however, the team has issued a solution. 

Hackers are used to attack the DeFi market with Sentiment being the recent victim. 

The team addressed the attack and was aware of abnormal borrowing activity, which has been declared to be a malicious exploit. The main contract has been paused to tackle the situation and the functionality has been restricted to withdraw-only.

Third-party security auditors have assisted the team to impose a solution, which will amuse users since they can repay debts as well as unwind their positions. The team is also working with law enforcement and others to find out the hacker and retrieve the funds.  

Sentiment was attacked on Arbitrum. Though the exact amount isn’t clear, the total amount is over $1 million, as mentioned above.

The attack has been analyzed and the attack technique is that the hacker used the view re-entrance Balance bug to enforce malicious code prior to pool balances being updated and funds being stolen via overpriced collateral. 

The last few months have seen a few attacks in the DeFi ecosystem. As a result, this year has been a rough patch. Recently, Euler Finance faced theft of over $200 million. Surprisingly, the hacker not only apologized but returned the money upon a negotiation with the team. 

Another victim was All ridge and lost over $570,000 in early April. The attack was associated with a swap-based formula’s possible manipulation. After returning some funds, the hacker received a bounty.

In March, the DeFi market lost around $200 million while in February, the entire funds that were lost were over $21 million.

Crypto projects must be careful regarding the safety of their platforms. With regulation becoming crucial more than ever, teams must ensure the security of investors.  

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• Source: https://investorbites.com/another-defi-attack-defi-lending-platform-sentiment-lost-over-1-million-in-attack/