Cryptocurrency project lost $ 2 million in just 2 minutes due to an exploit

Dough Finance’s DeFi protocol was attacked using instant loans. This led to the loss of almost $ 2 million worth of cryptocurrency in just 2 minutes. An instant loan allows a user to borrow a large amount of money on the condition that it is repaid in one transaction.

Peckshield experts were the first to notice the incident. The attack was funded through the zero-disclosure protocol Railgun, and the money laundering took place through Tornado Cash. These services are often used by hackers to cover their tracks. Dough Finance confirmed the hack a few hours after the incident.

According to Cyvers, the attacker exchanged the stolen USDC token for Ethereum, receiving 608 ETH worth about $ 1.9 million. It is important to note that the malicious contract was created less than 2 minutes before the transaction was hacked.

Olympix emphasized that the exploit was caused by unverified call data in the «ConnectorDeleverageParaswap» contract. The contract did not properly verify the data received during instant loan calls, which allowed the attacker to manipulate the data and steal funds.

Users who deposited funds into the exploited contract may be affected. The hack did not affect Aave pools. Olympix advised Dough Finance users to consider withdrawing funds to a secure wallet and avoid interacting with the protocol until the situation is resolved.

Dough Finance reported that it is actively working to recover the lost funds and create a fund to help affected users.

The No Worries editorial team strongly advises readers to familiarize themselves with cryptocurrency projects before making financial investments!