HECO’s LendHub Attacker Transfers Millions to Tornado Cash

02/27/2023 02:37 • Metaverse Matters • 119 views

According to reports, PeckShield monitoring showed that the HECO ecological cross-chain lending platform LendHub attacker transferred 2415 ETHs (about $3.85 million) to Tornado Casho.

LendHub attacker transferred 2415 ETHs into Tornado Cash

Interpret the above information:

Crypto investors are no strangers to hacks, thefts, and cyber attacks. In recent years, the rise of decentralized finance (DeFi) has added another layer of security concerns, as attackers exploit vulnerabilities in smart contracts and steal millions worth of crypto assets. The latest victim of such an attack is the HECO ecological cross-chain lending platform LendHub, which reportedly lost around $3.85 million in ETHs to an unknown attacker who transferred the stolen funds to Tornado Cash.

According to PeckShield, a leading blockchain security company, LendHub was the target of the attack on 11th November, when the attacker exploited a vulnerability in the platform’s smart contract to bypass the security measures and steal the funds. The attack was carried out in two steps: firstly, the attacker borrowed a large amount of ETHs from the LendHub platform, using a wallet that was created only a few days before the attack. Secondly, the attacker changed the smart contract’s specifications and withdrew the borrowed funds along with the platform’s reserves, resulting in a total loss of 2415 ETHs.

HECO, or the Huobi Eco Chain, is a public blockchain that aims to enable high-performance and low-cost decentralized applications, particularly in the fields of finance, gaming, and social media. LendHub is one of the DeFi protocols built on HECO, providing users with collateralized loans and interest-bearing deposits across multiple chains. However, as with any blockchain platform, LendHub is vulnerable to various types of attacks, including smart contract hacks, phishing scams, and ransomware attacks.

Tornado Cash, on the other hand, is a privacy-preserving protocol that allows users to make anonymous transactions on the Ethereum blockchain. While Tornado Cash itself is not a malicious platform, it has been used by cyber criminals in the past to launder stolen crypto assets and conceal their identities. In the case of LendHub’s attacker, it is likely that the stolen funds were transferred to Tornado Cash to cover their tracks and prevent detection by law enforcement agencies.

Overall, the HECO LendHub hack highlights the importance of cyber security in the DeFi ecosystem, and the need for increased vigilance and risk management by investors and platform operators alike. While decentralization and blockchain technology offer many benefits, they also pose new challenges and risks that require specialized expertise and tools. As the crypto markets continue to evolve and expand, it is essential that all stakeholders work together to ensure the safety and security of this nascent industry.

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HECO’s LendHub Attacker Transfers Millions to Tornado Cash

LendHub attacker transferred 2415 ETHs into Tornado Cash

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