Hong Kong-based Linear Finance Hacked, Stablecoin Liquidity Drained
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Hong Kong-based Linear Finance Hacked, Stablecoin Liquidity Drained

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Created 5mo ago, last updated 5mo ago

DeFi protocol Linear Finance was attacked on September 21, with the hacker draining liquidity from its Linear USD stablecoin.

Hong Kong-based Linear Finance Hacked, Stablecoin Liquidity Drained

Linear Finance Has Been Subjected To A Hacker Attack

DeFi protocol Linear Finance was attacked on September 21, with the hacker draining liquidity from its Linear USD stablecoin. According to a blog post, the attacker was able to manufacture a limitless amount of lAAVE tokens before exchanging them for lUSD on the Linear Exchange and selling them on PancakeSwap and Ascendex, effectively bringing the lUSD price to zero.

Linear Finance responded by suspending contracts that allowed token minting, burning, or swapping, disabling its lUSD bridge contract, and monitoring the attacker by revealing linked wallet addresses with key exchanges and authorities. The protocol is now trying to repair the damage caused by the exploit to users.

“Restoring the protocol and un-doing the damage for our users will be our highest priority until the issue is fully resolved,” said Linear Finance.

Linear Finance has not yet provided an update on the status of the investigation into the attack or the timeline for restoring the liquidity of the Linear USD token. However, the company has stated that it is committed to providing its users with a secure and reliable platform for decentralized finance.

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