DeFi Project WOOFi Hacked for $8.7M, Offers Bounty for Hacker Identification
In Brief
WOOFi was recently hacked in a flash loan vulnerability exploit and lost of $8.75 million, offers a 10% whitehat bounty on the hacker.
Decentralized exchange (DEX) platform WOOFi was recently targeted by hackers in a flash loan exploit, resulting in losses of $8.75 million. As investigations continue, the project’s team has immediately suspended activities in the affected pools.
The cross-chain DeFi protocol facilitating swaps and token staking across 11 blockchain networks suffered the attack through a vulnerability in one of its oracles on Arbitrum. Exploiting low liquidity, the attacker sold WOO tokens into WOOFi at manipulated prices and repeated the process multiple times, resulting in profits of around $8.75 million (2,000 ETH worth of funds).
Upon detecting the exploit, the WOOFi team promptly paused its smart contracts and initiated a comprehensive investigation. While the investigation is ongoing, the project reassured users that assets in its Earn vaults, WOOFi stake and other WOO contracts remain secure.
Despite the swift response, WOOFi’s native token, WOO, experienced a 9.6% price drop, trading at $0.518 at the time of the attack. Additionally, the total value locked (TVL) in WOOFi’s pools plummeted from $53.36 million to $44.3 million within 24 hours.
To mitigate further risks, WOOFi warned users of impersonator accounts attempting to deceive them into divulging sensitive information. These impostors pose as official WOOFi handles, directing users to phishing links to protect their funds.
The incident marks yet another high-profile hack in the cryptocurrency space this year. WOOFi joins a list of DeFi platforms targeted by cybercriminals, highlighting the persistent security challenges faced by the industry. Efforts to recover the stolen funds are underway, with WOOFi offering a 10% whitehat bounty on the exploiter and seeking assistance from security experts (individuals can contact WOOFi at [email protected]).
The project aims to resolve the vulnerabilities in its smart contracts and redeploy the WOOFi Swap within two weeks.
Acknowledging the support received during the crisis, WOOFi expressed gratitude to various individuals and organizations that aided in the response efforts. Despite the setback, the project said it remains committed to enhancing security measures to prevent future incidents and uphold user trust.
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About The Author
Victor is a Managing Tech Editor/Writer at Metaverse Post and covers artificial intelligence, crypto, data science, metaverse and cybersecurity within the enterprise realm. He boasts half a decade of media and AI experience working at well-known media outlets such as VentureBeat, DatatechVibe and Analytics India Magazine. Being a Media Mentor at prestigious universities including the Oxford and USC and with a Master's degree in data science and analytics, Victor is deeply committed to staying abreast of emerging trends. He offers readers the latest and most insightful narratives from the Tech and Web3 landscape.
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Victor is a Managing Tech Editor/Writer at Metaverse Post and covers artificial intelligence, crypto, data science, metaverse and cybersecurity within the enterprise realm. He boasts half a decade of media and AI experience working at well-known media outlets such as VentureBeat, DatatechVibe and Analytics India Magazine. Being a Media Mentor at prestigious universities including the Oxford and USC and with a Master's degree in data science and analytics, Victor is deeply committed to staying abreast of emerging trends. He offers readers the latest and most insightful narratives from the Tech and Web3 landscape.
