Decentralized Finance Protocol (DeFi) Grim Finance reported a loss of $ 30 million due to platform exploitation.
On Saturday, Grim Finance officially announced that an “external attacker” had exploited the DeFi platform and stolen cryptocurrencies worth “over $ 30 million”.
According to Grim Finance, the hack was an “advanced attack” in which an attacker exploited the protocol vault nodes after five re-entry cycles, allowing them to falsify five additional vault deposits while the platform was processing the first deposit.
Grim suspended all safes after the attack to reduce the risk of future funds: “We have suspended all safes to prevent the risk of future funds, please withdraw all your funds immediately.”
Grimm noted that they also alerted major cryptocurrency operators such as Circle (USDC), Dai (DAI) and the Internet Protocol AnySwap of the attacker’s address to freeze further money transfers.
Grim Finance bills itself as a “composite profitability optimizer” built on the DeFi-focused blockchain protocol Phantom, which allows users to participate in liquidity provider tokens through sophisticated treasury strategies.
According to Fantom (FTM) Blockchain Explorer, Grim Finance Exploiter continued to trade on Sunday. One of the addresses related to the exploitation contains $ 1.2 million in Bitcoin (BTC), $ 1.7 million in SpookyToken (BOO) and $ 13,700 in FTM tokens.
Some in the crypto community have suggested that Grim Finance should be held accountable for misuse because they have not used appropriate tools for protection against re-entry. DeFi security platform Rugdoc.io also claims that the protocol gives the user “more privileges than necessary”.
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The growing popularity of DeFi has created a number of new challenges for the cryptocurrency industry as hackers rush to exploit the industry’s new shortcomings. In early December, it was reported that the DeFi BadgerDAO protocol was used for an amount of 120 million dollars.