Cryptocurrency

Arbitrum

April

USDC

Optimism

<p>Pike Finance, a decentralized finance (DeFi) lending protocol, was attacked twice in a few days. Attackers used a smart contract vulnerability to steal digital assets worth millions. The first raid took place on April 26, and the loss amounted to $300,000. The second one, on April 30, caused the company to lose $1.68 million, which affected its operations across Ethereum, Arbitrum, and Optimism blockchain networks.</p>
<p>The attackers took advantage of a smart contract bug, which allowed them to modify the output address and thus unauthorizedly withdraw over $1.4M in Ethereum, $150,000 in Optimism tokens, and $100,000 in Arbitrum tokens. Post-incident, Pike Finance offered a reward of 20% of the amount or the assets stolen upon information leading to the recovery of the funds or the return of the stolen assets.</p>
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   <p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/CertiKInsight?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">#CertiKInsight</a> 🚨<br><br>Overnight <a href="https://twitter.com/PikeFinance?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">@PikeFinance</a> was exploited for ~$1.68m<br><br>The attacker executed the initialize function, adding their address to the _isActive variable<br><br>The attacker could then perform an upgradeToAndCall and upgrade to a malicious implementation <a href="https://t.co/FyxwlCYkad" rel="noopener noreferrer nofollow" target="_blank">pic.twitter.com/FyxwlCYkad</a></p>— CertiK Alert (@CertiKAlert) <a href="https://twitter.com/CertiKAlert/status/1785569236271747362?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">May 1, 2024</a>
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<h2 class="wp-block-heading" id="community-and-protocol-response">Community and Protocol Response</h2>
<p>Regarding the breaches, Pike Finance has implemented a number of actions to avoid further losses and address community worries. They recommended that users revoke all their approvals to safeguard their funds, and they have begun refunding some pre-sale deposits. The protocol is closely looking into the incidents and has informed users to expect further instructions.</p>
<p>The community showed great disquiet over the recurrent exploits, particularly in so short a space of time. This sentiment was exacerbated by the perceived slow initial reaction to the first incident, which some believe could have prevented the second attack.</p>
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   <p lang="en" dir="ltr">Attention Users:<br><br>On the 30th of April 2024, the Pike Beta protocol was exploited for 99,970.48 ARB, 64,126 OP and 479.39 ETH.<br><br>This exploit is related to the initial USDC vulnerability that was reported last week on the 26th of April.<br><br>In order to pause the protocol, the spoke…</p>— Pike (@PikeFinance) <a href="https://twitter.com/PikeFinance/status/1785572875124330644?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">May 1, 2024</a>
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<h2 class="wp-block-heading" id="cryptocurrency-hacks-in-decline">Cryptocurrency Hacks in Decline</h2>
<p>However, despite the cases with Pike Finance,<a href="https://twitter.com/certikalert/status/1785262226430926997" rel="noopener noreferrer nofollow" target="_blank"> a CertiK repor</a>t informs that the cryptocurrency sector reported a decrease in the total amount of losses from hacks and scams. April recorded the minimum monthly figure since 2021 of $25.7 million in losses due to such occasions. This is a sharp decrease compared to the previous months, owing to fewer private key compromises and tougher security measures in general.</p>
<p>However, over $502 million was still lost to hacks and exploits in the first quarter of 2024, indicating that security remains a critical issue for the cryptocurrency community.</p>

Pike Finance Hit for $1.6M in Second Hack Within 3 Days

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