It took a while for the team to confess to Sentiment, a decentralized finance (DeFi) protocol on the Arbitrum network, that it had been hacked, even after the global community started tracking the movement of coins from wallets.
However, the team went public this Wednesday (5) and confirmed that it is yet another target in the cryptocurrency market.
Suspicions about the matter began last Tuesday (4), when companies tracking cryptocurrencies saw values disappear from project portfolios. Initially, Sentiment just said it was made aware of a problem, but was still investigating.
“The Sentiment team has recently been made aware of a potential issue related to the Sentiment protocol. We are actively investigating the situation and will provide additional information as soon as possible.”
The Sentiment team was recently made aware of a potential issue related to the Sentiment protocol. We are actively investigating the situation and will provide additional information shortly.
— Sentiment (@sentimentxyz) April 4, 2023
What does the DeFi protocol say that runs on the Arbitrum network and was attacked by a hacker?
After some reluctance to confess to the hacking attack against their protocol, Sentiment updated its followers claiming that it had suffered the malicious incident.
With that, he called the authorities to help track cryptocurrencies and partner companies, who are aiding the protocol in the quest to recover the coins.
This Wednesday, the team confessed that they had already made corrections to the protocol, after pausing the smart contract to maintain it. With the help of auditors, the flaw exploited by the hacker has already been contained and should not cause any new problems.
In any case, protocol clients can close their positions and withdraw amounts, the project guarantees.
Analyst points out that a gap has occurred in several tokens
The Blockchain Engineer Imaddin Amsifwho followed the Sentiment case from the start claims that the hacker’s wallet was funded with Tornado Cash.
He then exchanged money in Ethereum for WETH and entered the Arbitrum network via Socker Bridge. With access to the target contract, he could use a self-destruct function, sending the coins to an address in his possession.
According to the engineer in a blockchain trace, the case resulted in the loss of the following cryptocurrencies and values:
- 538,399,3282 USDC（$538,237.81);
- USDT 360,000（$360,115.2);
- 29.9731 WETH（$55,977.79);
- 0.517WBTC（$14,557.98).
As a result, it is clear that the loss for the project is approaching $1 million, with $968,000 stolen, or R$4.8 million.
It is not yet clear if the hacker intends to keep the value, or if he will contact you to return some of the cryptocurrencies. Publicly, DeFi has not confirmed how much value was lost in the attack.
Either way, it shows that DeFi projects on the Arbitrum network are starting to get attention from cybercriminals after major attacks on the Ethereum network.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
