Blockchain security firm PeckShield recently detected a hack that allowed attackers to mint more than 1 quadrillion Yearn Tether (yUSDT) from $10,000 in the latest decentralized finance (DeFi) breach.
The hackers then exchanged yUSDT for other stablecoins, resulting in $11.6 million worth of stablecoins, according to the security firm. These include 61,000 Pax Dollar (USDP), 1.5 million TrueUSD (TUSD), 1.79 million Binance USD, 1.2 million Tether, $2.58 million USDC and 3 million Dai.
PeckShield says hackers have moved 1,000 Ether, currently worth nearly $2 million, approved cryptocurrency mixer Tornado Cash. The blockchain security firm also flagged DeFi protocols Aave and Yearn.finance to inform them of what was happening. After an initial inspection, lending platform Yearn.finance issued a statement saying the problem was limited to iearn, an outdated contract prior to vault v1 and v2. The current Yearn.finance contracts and protocols are not affected by the vulnerability, the DeFi protocol said.
At the same time, Aave also stated that they were aware of the deal. Liquidity Protocol recently confirmed that the hack did not affect Aave v1, v2, or v3.
Although hacks will still plague the DeFi space in 2023, the damage caused by hacks has decreased compared to previous years. According to a quarterly report from blockchain security firm CertiK, hackers lost more than $320 million in the first quarter of 2023. Compared with the $1.3 billion lost in the first quarter of 2022 and the $950 million lost in the fourth quarter of 2022, the loss is much lower lost to hackers.
