$8.5 million was stolen from DEX on Arbitrum

On March 5, unknown individuals attacked the decentralized exchange (DEX) WOOFi based on Arbitrum. The project team asked the hackers to return the funds for a reward of 10% of the stolen amount.

WOOFi has become the victim of a massive hack. During the attack, the attackers stole more than $8.5 million. This was noticed by a blockchain security platform Cyvers Alert.

What's happened

According to analysts, hackers hacked the WOOFi smart contract. The address to which cryptocriminals transferred the stolen funds is associated with the Tornado Cash cryptomixer. From this wallet, as experts found, the attackers covered all transaction costs.

WOOFi Team confirmed fact of attack. The developers noted that the attackers attacked the Synthetic Proactive Market Making (sPMM) algorithm, the main pricing mechanism in the Arbitrum network.

On the official page on X (formerly Twitter), representatives of the exchange wrote that they localized the threat within 13 minutes. According to them, the WOOFi Pro, Stake and Earn contracts were not affected.

“We have already made efforts to recover the stolen funds. We are also offering a 10% reward to the hacker,” the DEX team noted.

How the WOO token reacted

The native token of the WOOFi ecosystem, WOO, immediately fell by more than 12% from $0.548074 to $0.481499 amid the news. According to CoinGeckoat the time of writing, the asset is trading at $0.547, having fallen in price by a total of 5.6% per day.

WOOFi is a decentralized exchange launched at the end of 2021. The platform offers users services for exchanging, buying and selling digital assets. In addition, WOO holders can also lock their staking assets.

DeFi projects remain the most popular target for hackers

In just two months since 2024, the decentralized finance (DeFi) sector has experienced several large-scale hacks. Thus, in early January, unknown persons attacked the Gamma protocol. More than $4 million was taken out of it.

Before him, the Radiant Capital project became a victim of hacking. As a result of the hack, cybercriminals stole 1,900 ETH worth about $4.5 million.

In mid-February, hackers attacked the Ethereum-based gaming blockchain platform PlayDapp. The attackers stole almost $6 million, and the platform’s native token fell to a multi-month low.


Source: Cryptocurrency

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