DeFi lending protocol UwU Lend was hacked again today and lost $3. 7 million, according to the Block Sec and Beosin, the blockchain security firms. This is the second incident within the same week and both have been carried out by the same hacker. The stolen assets, now in the form of ether, are now in the possession of the attacker.
Details of the Attack
On June 10, UwU Lend experienced its first exploit, where attackers utilized flash loans to manipulate the sUSDe stablecoin price oracles, leading to a $20 million loss. Following this incident, UwU Lend claimed to have identified and resolved the security vulnerability, describing it as unique to the sUSDe market oracle.
Despite these assurances, today’s attack highlights ongoing security challenges for the protocol. Analysts suggest that both exploits share similarities, pointing to the same perpetrator’s involvement.
Background and Response
UwU Lend was started by Michael Patryn, who is also known as Omar Dhanani and 0xSifu. Patryn had earlier on co-founded QuadrigaCX which was a cryptocurrency trading platform that became bankrupt as a result of fraud.
After the first incident, the platform UwU Lend admitted the incident and said that the vulnerability was closed. However, today’s attack reveals that the protocol’s weaknesses are still present and need further addressing.
The recent exploits raise concerns about the security measures in place and the effectiveness of the fixes implemented after the initial attack.
Moreover, a double hit within a week underlines the need for robust security protocols in decentralized finance platforms to protect users’ assets and maintain trust in the system.
Also Read: Linea Exploit Reveals Decentralization Flaws in Ethereum L2s
