<p class="is-style-lead">Three days after an $800,000 security breach, Sturdy Finance reopened its stablecoin market. Additionally, the decentralized finance (DeFi) protocol has offered a reward of $100,000 to anyone who could facilitate an arrest or assist in recovering the stolen funds.</p>



<h2 class="wp-block-heading" id="sturdy-finance-reopens-stablecoin-markets">Sturdy Finance reopens stablecoin markets</h2>



<p>On June 16, the lending platform announced lifting the suspension on the stablecoin market, granting customers access to their assets once again. </p>



<p>Users were assured that their funds remained secure, and the temporary trading halt was implemented purely as a precautionary measure.</p>



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"><p lang="en" dir="ltr">The stablecoin market is now unpaused, enabling users in this market to access their funds!<br><br>No funds in this market were ever at risk; the market was only paused out of an abundance of caution. As an additional safety measure, the bb-a-USD pool has been disabled 🛡 <a href="https://t.co/uRL0gKQSEJ" target="_blank">pic.twitter.com/uRL0gKQSEJ</a></p>&mdash; Sturdy 🧱 (@SturdyFinance) <a href="https://twitter.com/SturdyFinance/status/1669501561339523073?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 16, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<p>In response to an incident that led to the theft of 442 ethereum (ETH), equivalent to approximately $800,000 at the time, the platform ceased trading across all markets on June 12. </p>




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<p>The exploit capitalized on a flawed pricing oracle and other factors to siphon funds from the platform.</p>



<h2 class="wp-block-heading" id="strong-recovery-efforts-strong"><strong>Recovery efforts</strong></h2>



<p>In a Medium <a href="https://sturdyfinance.medium.com/community-update-bef2a7c4a824" target="_blank" rel="noopener">post</a>, Sturdy Finance disclosed its collaboration with security experts specializing in on-chain analysis to reclaim the stolen funds. The team highlighted its cooperation with law enforcement agencies worldwide to gather relevant information.</p>



<p>Furthermore, the DeFi protocol extended a $100,000 reward to the hacker responsible for identifying and exploiting the vulnerability.&nbsp;</p>



<p>The team offered to drop the investigation and move forward if the remaining funds were returned to their designated cryptocurrency wallet.&nbsp;</p>



<p>However, the community update also specified that if the funds were not returned, the team would allocate the reward to anyone instrumental in facilitating an arrest or recovering the stolen funds.</p>



<p>Sturdy Finance is a platform that offers interest-free borrowing and high-yield lending. Their approach involves staking the assets of borrowers and distributing rewards to lenders.</p>



<p>Even so, Sturdy Finance&#8217;s total value locked (TVL) <a href="https://defillama.com/protocol/sturdy" target="_blank" rel="noopener">continues</a> to drop, data from DeFiLlama shows. With around $10 million under management, the protocol&#8217;s TVL has more than halved from the over $25 million Sturdy Finance managed in March 2023.</p>



<p>In related developments, cybercriminals continue to devise increasingly sophisticated techniques to conceal their ill-gotten gains.&nbsp;</p>



<p>On June 15, the blockchain analytics firm, Chainalysis, <a href="https://go.chainalysis.com/2023-crypto-crime-report.html" target="_blank" rel="noopener">published</a> research on hackers&#8217; utilization of mining pools to mask their illicit profits. The study explored how hackers leverage mining pools to obscure the origins of ransomware-generated earnings, presenting them as income from legitimate mining operations.</p>




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        Read more:

        <a href="https://crypto.news/defi-protocol-sturdy-finance-falls-victim-to-800k-security-attack/">
            DeFi protocol Sturdy Finance falls victim to $800k security attack        </a>
    </p>

DeFi protocol, Sturdy Finance, reopens stablecoin market despite falling TVL

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