Inverse Finance loses $15.6 million to hackers

Inverse Finance

TL; DR Breakdown

  • Inverse Finance suffers breach
  • The hacker breached the platform through Keep3r
  • Inverse Finance wants to create a new Oracle

Hackers have continued to run riot in the crypto sector despite the many security measures preached across the market. In a recent report, lending platform Inverse Finance has become the recipient of a hack that saw the protocol lose $15.6 million. The Ethereum based protocol first reported the hack on Saturday while things were still sketchy. The criminals were said to have stolen the funds in diverse digital assets on the protocol.

The hacker breached the platform through Keep3r

According to the mode of operation, Inverse Finance mentioned that the hacker was able to pull off the heist by targeting the money marker on Anchor. After that, he manipulated the prices of tokens to cause their decline before obtaining loans. However, an analytics firm, PeckShield, has mentioned that the hacker was able to breach the platform through a vulnerability in the Keep3r price.

The move would trick the oracle into thinking that the native token of the Inverse Finance protocol has undergone a surge. With that already in place, the hacker was able to request loans running into millions. Notably, he used the native token of the platform, INV, as collateral for his loans. After the hack was noticed, Inverse Finance put out a statement suspending borrowing services on Anchor.

Inverse Finance set to create new Oracle

The bad actor took a surprising turn while during the hack after he sent in $3 million into the platform from Tornado Cash. The protocol is a mixing platform that was on the same blockchain. After the deposit, the funds were sent into different trading pools across SushiSwap, which pushed INV high. This is the third time a decentralized finance outfit will suffer a hack attack this week, highlighting the need for more security measures.

The most popular one was Ronin, which saw the hackers cart away $625 million. The funds stolen from Ronin were said to belong to about five traders. According to an analyst, hackers are now using vulnerabilities found in measures to ensure the smooth going of protocol operations to breach the platform. This Inverse Finance hack saw the hacker cart away tokens like ETH, DOLA, and YFI. Although most of the cash has been run through Tornado Cash, the hacker still holds possession of about $250,000 of the looted funds in his wallet. Presently, Inverse Finance is working with Chainlink to create a new oracle.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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