DeFi is known by the community as next big thing called on the financial market. Combining decentralization with finance, being in complete control of your assets and high interest rates make the new market particularly tempting. This entices more and more investors to multiply their crypto currencies through so-called "farming". Unfortunately, DeFi does not only bring advantages.
Harvest.Finance: $ 24 million stolen - was it an inside job?
Because even decentralization is not safe from hacker attacks. And in the case of stolen funds, the developers behind the logs of course do not guarantee that investors will get their capital back. In truth, the chances of this are 0. With the emergence of new DeFi projects, there have been increasing reports of stolen funds and hacked logs. A few hours ago it hit Harvest.Finance, one of the most famous farming projects.
On Monday, October 26.10.2020th, 24, a hacker carried out an arbitrage attack with the help of a large flash loan on the DeFi protocol Harvest Financee. Using this method of price manipulation, the hacker captured a total of USD 2.5 million, but returned USD XNUMX million. A nice gesture, but investors and developers should not be satisfied with this.
To the surprise of the community, Harvest Finance announced on Twitter that it had no interest in revealing the hacker's identity. You only ask for the investors' funds to be returned. This statement ensures that many investors suspect an inside job rather than an attack. Because the Harvest.Finance team is and remains, as with many projects, completely anonymous.
According to the Harvest.Finance Twitter account, the attacker is a familiar face on the crypto market. This creates additional skepticism among investors. Why not publish your face when you know who it is? What else do the developers have to lose?
In any case, the team promises to publish a report on the incident within the next 16 hours. It should also explain how the future risk of such attacks can be reduced. It is questionable whether investors will continue to entrust their money to Harvest.Finance in the future.
We will release a post mortem report within the next 16 hours, and work on future risk-mitigation strategies against flashloan economic attacks, including evaluating insurance options, as well as reparation strategies
- Harvest Finance (@harvest_finance) October 26, 2020
Prior to the hack, there were more than $ XNUMX billion worth of assets on the log.
Course of the crypto currency FARM course collapses completely
After the news about the exploit spread, investors rushed to their wallets to sell FARM, the cryptocurrency of the Harvest.Finance protocol, as quickly as possible. In just 30 minutes, the FARM cryptocurrency fell from $ 230 to $ 75. This corresponds to a price loss of more than 65%. The FARM rate has now settled at $ 120.
The following chart shows the time the news was announced:
Photo credit: pixabay.com | CC0