A flash loan attack targeted cryptocurrency borrowing and lending service Akropolis and stole $2 million in Dai crypto tokens. The decentralized finance (DeFi) platform revealed the news on Thursday, November 12, saying admins put all transactions on hold to prevent additional losses. It also stated that it hired two firms to investigate the matter, but neither company managed to determine how the attack took place. CertiK, one of Akropolis’s auditors, also audited DeFi protocol bZx, which was on the receiving end of three hacks this year. However, Akropolis described it as a flash loan attack, allowing criminals to secure loans from DeFi projects but escape with the entire funds without returning payment due to a system vulnerability.
This type of offensive has become quite popular among criminals, especially against DeFi services. The latter platforms enable crypto investors to borrow loans in cryptocurrency, speculate on price changes, and earn interest on savings-like accounts. The most recent flash loan attack came against Harvest Finance in October, with hackers cleaning $24 million worth of crypto coins. But luckily, in this case, Akropolis said it has already pinpointed the culprit’s Ethereum account, which means it can track funds across the blockchain. The platform also informed all major cryptocurrency exchanges about the cyberattack and the hacker’s wallet. This should prevent any attempt of crypto-laundering, law evasion, and cashing out. Akropolis also said it was looking for ways to reimburse impacted customers.
According to a Ciphertrace report, hackers have stolen nearly $100 million from DeFi platforms so far in 2020. The figures account for 40% of all crypto-related hacks and 21% of all cyberattacks this year. The report adds that cybercriminals target the decentralized ecosystem because there are no security verifications or regulatory frameworks. And the fact that these platforms offer total anonymity is appealing to bad actors, who can steal and launder huge funds without being identified. Therefore, the safest course of action for banking or cryptocurrency transactions is using a VPN with a strong encryption algorithm. The VPN.Guru offers unbiased VPN views, news, and reviews, as well as valuable how-to guides.