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Flash loan crypto hacks hit record lows in April

TL;DR

  • Hacker moved $4.3M stolen Hundred Finance funds after year, also drained $800K from Curve DEX.
  • Exploited token conversion rates on Optimism Layer-2, flash loan attacks hit record lows in April 2024.
  • November crypto hack losses were modest at $60M compared to February’s $360M and March’s $187M losses.

After a year of inactivity, the hacker of Hundred Finance, DeFi protocol, who stole 7.4 million USD, began to transfer crypto assets. The total amount that the hacker keeps in their Ethereum wallet at the moment is about 4.3 million dollars.

Dormant hacker reactivates

The wallet of the hacker who took away the liquidity of the DEX Curve not so long ago, amounting to about 800,000 from their savings, currently contains a total of 4.3M assets, including a significant amount of cryptocurrencies, like Dai.

One of the coins held is wrapped in Ether, a digital coin. Then there is another called FRAX, and lastly, Bitcoin. DeFi, on April 15, 2023, went on to say that it was attacked on a layer-2 network esteemed for its security optimism.

Source: Etherscan.

As per the security firm CertiK report, the attacker has altered the currency conversion between ERC-20 tokens and hTOKENS, which appears to be their main objective. With this mechanism, they ended up exiting with more tokens in their hands than when they went in.

A flash loan attack is a very well-known terminology, the defi-verse. This type of attack vector will generally be a large unsecured loan taken from a lending platform and issued by a Borrower who does not have enough funds in the same platform or from collateralized loans.

The hacker resorts to the assets in furtherance of the scheme with connected crypto and DeFi platforms for price manipulation. In the Hundred Finance hack, the perpetrators assume huge loans based on the falsified foreign exchange rate.

Flash loan attack trends

In 2022, Attackers and other destructive elements attacked the Gnosis Chain network on Hundred Finance. A reentrancy attack drained the protocol of $6 million of liquidity. Although flash loan attacks are a new phenomenon in the crypto space, data shows that the cases have decreased since April 2024.

Contrary to statistics released by one of the world reports, flash loans decreased to only $129k in April. The biggest incident of the month, a single event, cost around $55,000 to repair. CertiK declared that very recently, a record-low amount was lost to the attacks on flash loans compared to February 2022.

However, November suffered moderate losses due to crypto hacks compared to April. According to the other party’s security unit, PeckShield, the month’s hacks were the only thing that brought $60 million to the company. The magnitude of the losses of $360 million and $187 million for February and March has sunk by $305 million in April compared to the preceding months.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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