Cryptocurrency platform loses 99% of funds due to hacker attack

According to security experts PeckShieldAlert, the New Free DAO lending platform lost more than $ 1.25 million, which is 99% of the project’s total funds, due to a hacker attack.

#PeckShieldAlert #slippage PeckShield has detected that $NFD has dropped -99% probably falls victim to a flashloan-assisted attackhttps://t.co/hS3HUTx6a0
The exploiter grabbed ~4,500 $BNB (~$ 1.25M) and has swapped ~2,000 $BNB to ~550k $BSC-USD pic.twitter.com/5k11RLJuCQ

— PeckShieldAlert (@PeckShieldAlert) September 8, 2022

As it became known, the hacker carried out the attack due to a platform vulnerability. Trying to get a loan from BNB, the fraudster managed to steal tokens worth $ 1.25 million and exchange some of the funds for BSC-USD. Interestingly, prior to the incident, New Free DAO was not in demand among members of the cryptocurrency community, so experts believe that the hacker attack may be an attempt by representatives of the DeFi platform to draw attention to the project.

At the end of August, a Brazilian cryptocurrency startup created a fake hacker attack after stealing its customers' cryptocurrency. As it became known, the BlueBenx platform attracted more than 22,000 users, who were promised big profits by the startup’s representatives. According to the depositors, they expected to receive up to 66% of the profit for depositing cryptocurrencies.

«I think there is a high probability of fraud — this whole story about the hacker attack looks like complete nonsense, they just made it up,» one of the platform’s investors shared his opinion.