SAN FRANCISCO, Tuesday, June 18, 2024 – Decentralized finance (DeFi) protocol ‘UwU Lend’ fell victim to a security exploit that drained over $19.3 million in cryptocurrency, according to blockchain security firm Arkham Intelligence.
Arkham Intelligence confirmed the exploit on June 10, 2024.
In addition, UwU also said on June 10 on X:
“The protocol was paused a little under an hour ago while the team investigates the situation. Please rest assured that we were made aware of the situation immediately and are taking all necessary steps, doing our best here. Stay tuned for further updates.”
On-chain data reveals that a single wallet successfully extracted a variety of tokens, including wrapped ether (WETH), wrapped bitcoin (WBTC), and stablecoins, before exchanging most of them on Uniswap.1
The exact nature of the exploit remains undisclosed, but it highlights ongoing vulnerabilities within the rapidly evolving DeFi landscape. Details surrounding the attack are still emerging.
The incident raises concerns about the security of DeFi protocols, which offer financial services without traditional intermediaries.
As the industry continues to grow, developers and users must prioritize safeguarding user funds and mitigating potential vulnerabilities.
