When you use DeFi protocols, you feel that gives you the freedom and execute transactions without restrictions. You need to pay attention to the risk as well when you use DeFi and provide liquidity in the liquidity pool. Hackers and criminal actors are waiting to take advantage of any vulnerability to exploit and steal from the protocol.
Recently hackers have exploited DeFi stablecoin protocol TheStandard.io and ended up getting $264,000. Blockchain security analysts CertiK made an analysis and reported about it. Hackers took advantage of the situation of low liquidity and exploited the PAXG liquidity pool on Arbitrum.
Criminal actors manipulated the price and stole 8,500 USDC and 280,000 Euros from the liquidity pool. Then they used the fund to mint an Algebra position NFT. This is bad news, people lose their crypto assets due to exploits and hacks. Unfortunately, it keeps happening and there is no sign of slowing down.
It is good to decide to get involved in DeFi and create an income stream. Decentralized Finance (DeFi) keeps growing and draws more attention day by day. You need to be aware of the risk factors when you get involved in DeFi.You know how much risk you are taking and you can manage your risk properly.
TheStandard protocol paused all new EUROs minting for the time being. They will investigate more and fix the problem. They also make an attempt to contact the hackers to recover the stolen funds. They request the hackers to return funds and make it a white hack. They are ready to negotiate a deal with hackers.
TheStandard team did not give a warning like they had information about hackers and law enforcement agencies would hunt them down. Instead, the team takes a humble approach saying it is a small project without having deep pockets. Hackers can contact the team via DM to make a deal or they will be under constant monitoring.
Every platform makes its move to recover the stolen funds after exploits and hacks. Hackers' transactions and activity can be monitored to track them with a view to recovering the funds. Hope they will be able to overcome this challenge and recover from the loss.
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Reference: 1.
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It sucks to hear about the exploits but I think that is the first time I have heard of a team not getting law enforcement involved though.
I think they made a humble approach to the hackers in order to get a response. Maybe they hope hackers are more likely to respond in that way.
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