Arbitrum

Yield Protocol

DeFi

Euler

Yield

Yield Protocol, a lending platform developed on the Arbitrum blockchain, has suffered a security breach, causing a stir in the Decentralized Finance world.
Yield Protocol, a defunct decentralized finance (DeFi) lending protocol, was hacked by unknown attackers who managed to drain approximately $181,000 worth of crypto assets by exploiting smart contracts present on the Arbitrum blockchain.
Following the wind-down of the Yield Protocol in December 2023, the protocol advised investors to close their positions, withdraw funds, and pay off any pending loans, citing an inability to keep up with the lack of business demand and global regulatory pressures.
<h2 class="wp-block-heading" id="strong-rising-scams-in-the-crypto-world-strong">Rising Scams In The Crypto World</h2>
Although scams in the <a href="https://www.thecoinrepublic.com/2024/01/11/bitcoin-etf-approved-a-historic-win-for-the-crypto-community/" target="_blank" rel="noopener noreferrer nofollow">crypto community</a> are not new, they have increased recently. Impersonators have been detected attempting to exploit crypto users and take advantage of current trends, such as the meme coin frenzy. On the other hand, scammers have targeted various personalities and projects, from virtual artists to L2 NFT-focused blockchains and liquid re-staking protocols.
With the recent launch of the Solana-based meme coin Slerf, impersonators created an account pretending to represent the project’s team. However, the accidental burn of the Liquidity pool (LP) and Presale airdrop SLERF tokens resulted in the loss of over $10 Million raised by the presale participants.
In February, an unauthorized user breached MicroStrategy’s X account, resulting in the theft of approximately $440,000 worth of cryptocurrency.
Although there were more phishing victims in February than in January, the overall amount stolen was less than the previous month. Additionally, February saw a significant decrease in the number of victims who lost over $1 Million.
Moreover, in recent months, Compound Finance, Rocket Pool, Blockchain Capital, and even Vitalik Buterin have had their X accounts infiltrated by crypto phishers.
<h3 class="wp-block-heading" id="strong-hackers-drained-funds-despite-the-warning-strong">Hackers Drained Funds Despite The Warning</h3>
Despite the warnings, hackers managed to drain funds from Yield Protocol’s strategic contracts by exploiting a discrepancy between the pool token balance and total supply with flash-loaned assets and then withdrawing extra pool tokens. Blockchain investigation firm PeckShield was the first to report about the hack, which was later confirmed by CertiK.
On February 2, official support for Yield Protocol came to an end. Despite previous instances of recovery, the likelihood of retrieving the stolen funds seems low.
In 2023, Yield Protocol was one of 11 decentralized finance protocols that experienced losses due to an attack on the noncustodial lending protocol Euler Finance. By July of that year, Yield Protocol had completely bounced back from the Euler flash loan attack
Yield Protocol collaborated with Euler to recover the funds. This involved creating 26 new contracts and making approximately 300 permission calls to reset the maturity of the fixed-yield tokens and restore the protocol to its original state. Blockchain security firm Immunefi recently reported a 23% decline in losses due to hacking and scams in the first quarter of 2024 compared to 2023.
<h3 class="wp-block-heading" id="strong-conclusion-strong">Conclusion</h3>
Yield Protocol advised investors to withdraw funds due to the lack of demand and global regulation. Crypto scams are increasing, with hackers exploiting virtual artists and specific blockchain protocols. PeckShield discovered that hackers drained funds from Yield Protocol’s contracts.
<h4 class="wp-block-heading">Disclaimer</h4>
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.

Crypto Scam: Hacker Steals $181k From Defunct DeFi Protocol

Table of Contents

Thecoinrepublic.com

Other articles published on Apr 30, 2024

Shiba Inu and Dogecoin Rival Coin Dapper Duck (DAPDUCK) Prepares for 7,400% Rally After Solana La...

Top 6 Crypto Presales May 2024: BlockDAG Leads The List With BTCMTX, ALGT, DST, TUK, & HARAMBE AI

Peter Schiff Predicts Bitcoin (BTC) Price Will Crash to $20K

Altcoins Poised to Outperform Bitcoin?

Bitcoin’s May prediction – Is $70,000 a real certainty or is…

Dogecoin, Floki Or Bonk—Which Meme Coin Has The Fairest Distribution?

Join our free newsletter for daily crypto updates!