Ethereum

WETH

DeFi

Sonne Finance

USDC

Sonne Finance, the DeFi lending platform based on Optimism, a top Ethereum Layer 2 network, suffered a security breach which caused a great loss of about $20 million. The attack, carried out in two stages, hit the USDC and WETH contracts of Sonne Finance, and the amount stolen by them was $3 million’s at first and then $17 million in the later time. Investigators are on the track of the person responsible for this crime.&nbsp; 
<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">
 All markets on Optimism have been paused. Markets on Base are safe. We'll provide more information with time.— Sonne Finance (@SonneFinance) <a href="https://twitter.com/SonneFinance/status/1790535383005966554?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">May 15, 2024</a>
 </blockquote> 
 </div>
</figure> 
&nbsp;Fiat’s USD-stabilized Optimism coin might make a 74% loss to the users who do not exit the markets in time. Sonine Finance has stopped the activities of optimism in order to look into the problem.&nbsp; 
<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">
 Get out of <a href="https://twitter.com/SonneFinance?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@SonneFinance</a> while you can, there is still about mid 6 figures of borrow liquidity available.<a href="https://twitter.com/overnight_fi?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@overnight_fi</a>'s USD+ on Optimism (not other chains!) is unfortunately hit by this too, a 74% loss if the markets are not exited in time.<a href="https://t.co/uDjQq31WtR" target="_blank">https://t.co/uDjQq31WtR</a> <a href="https://t.co/7Uhupcfvpi" target="_blank">https://t.co/7Uhupcfvpi</a> <a href="https://t.co/2IAyXXwYIH" target="_blank">pic.twitter.com/2IAyXXwYIH</a>— Saul (@SaulCapital) <a href="https://twitter.com/SaulCapital/status/1790515168696209565?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">May 14, 2024</a>
 </blockquote> 
 </div>
</figure> 
Although the real reason is still under study, some believe that it could be connected to the lending market that has been added recently. The initial coin’s native token, SONNE, experienced a 15% fall after the exploit, which brought the market cap of the platform to $4.25 million. 
<img fetchpriority="high" decoding="async" width="602" height="285" src="https://lh7-us.googleusercontent.com/j83FQflFkADaSSM-H6Qw-eoYu0m-xzeEXUaDmCnSCD-6raGGEREcFyZitDAMMpMRVU26xV3qLMZMytHTq4NhYRXs4vi75TrJTZPB-hZ_F_LaO9OSSoZSg2uhA8ZqHVLDmliSp7XQTEmpgkLNdH93qGg" alt="j83FQflFkADaSSM H6Qw eoYu0m xzeEXUaDmCnSCD 6raGGEREcFyZitDAMMpMRVU26xV3qLMZMytHTq4NhYRXs4vi75TrJTZPB hZ F LaO9OSSoZSg2uhA8ZqHVLDmliSp7XQTEmpgkLNdH93qGg"> 
source: <a href="https://defillama.com/" target="_blank" rel="noopener">DefiLlama.com</a> 
This event proves that the DeFi space continues to be a place with a lot of security problems. The emergence of DeFi has led to more and more users using this technology, therefore, it is of utmost importance to ensure strong security measures are in place so that the confidence of the users will not be shattered and the attacks will not be repeated in the future. 
Also Read: <a href="https://www.cryptotimes.io/2024/05/15/el-salvador-mines-474-btc-with-volcano-geothermal-energy/">El Salvador Mines 474 BTC with Volcano Geothermal Energy</a>

DeFi Lender Sonne Finance Drained of $20 Million in Exploit

The Crypto Times

Other articles published on May 15, 2024

Upwood.io Launches First Security Token Offering, Revolutionizing Forest Asset Investments

FTX Delays Debt Submission Deadline To August, Here’s All

Canada Banking Giants Pour Millions Into Bitcoin ETF Amid Inflow Resurgence

Robinhood Expands in Europe with Solana Staking and Customer Bonuses

Circle IPO Incoming?! USDC Issuer Seeks to Shift Base to US Market from Ireland

Crypto Analyst Shares Top AI Altcoin Investments This Month

Join our free newsletter for daily crypto updates!