Phoenix Finance DeFi Protocol Suffers Attack Resulting in Loss of 100000 USDC

03/08/2023 09:40 • Metaverse Matters • 122 views

According to reports, according to CertiK monitoring, the DeFi protocol Phoenix Finance was attacked on March 7, resulting in a loss of about 100000 USDC. The attacker uses a fake OPT token to borrow USDC, and then connects the capital bridge to Ethereum and deposits it in Tornado Cash.

Phoenix Finance was attacked, resulting in a loss of 100000 USDC

Analysis based on this information:

According to CertiK monitoring, Phoenix Finance, a popular DeFi protocol was targeted on March 7. The attackers reportedly used a fake OPT token to borrow USDC and then used a capital bridge to connect to Ethereum where it deposited the funds in Tornado Cash. This resulted in a loss of approximately 100000 USDC.

DeFi, short for Decentralized Finance is known as a game-changer for the traditional financial industry. The DeFi protocol is a system of blockchain-based platforms that allows users to trade and lend cryptocurrency without requiring intermediaries such as banks or financial institutions.

Phoenix Finance, a DeFi protocol, has been targeted in the recent attack where the attackers used a smart trick to deceive the system. The attackers allegedly used fake OPT tokens to borrow USDC, which is a stablecoin pegged to the US dollar. The attackers then used a capital bridge to connect to Ethereum and deposited the funds in Tornado Cash.

Tornado Cash is a platform that allows people to transact privately on Ethereum. It employs a technology called zero-knowledge proofs that enables users to send and receive Ethereum without revealing the sender’s or the receiver’s address. Using Tornado Cash makes it difficult to track the flow of funds from one wallet to another.

This incident is a grim reminder of the susceptibility of the DeFi protocols to cyber-attacks. A successful attack like this could lead to a loss of trust in the system, potentially harming the development of DeFi protocols.

As the popularity of DeFi continues to grow, more attention is being paid to its security. The attack on Phoenix Finance has spurred calls for better security measures in the DeFi space. It is critical for DeFi developers to continuously monitor and test their systems to ensure that they are not vulnerable to attacks.

In conclusion, the DeFi protocol Phoenix Finance has recently suffered a security breach resulting in a loss of approximately 100000 USDC. The use of a fake token and capital bridge in connection with Tornado Cash was a smart tactic by the attackers, highlighting the need for better security measures in the DeFi space.

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Phoenix Finance DeFi Protocol Suffers Attack Resulting in Loss of 100000 USDC

Phoenix Finance was attacked, resulting in a loss of 100000 USDC

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