Lava Lending Exploited By Flash Loan Attack; Crypto Worth $340K Stolen

The post Lava Lending Exploited By Flash Loan Attack; Crypto Worth $340K Stolen appeared first on Coinpedia Fintech News

A major decentralized lender, Lava Lending, was the latest target of a sophisticated hack, which eventually led to a loss of about $340,000 worth of cryptocurrencies. Although the vulnerability was directed to different contract categories like UST, wstETH, UDSC.e and USDC, the platform quickly answered the problem.

Firefighters are looking into a reported exploit. Please sit tight as we work with our community partners to resolve the situation and determine a clear plan of action.

— Lava | Live on Arbitrum (@LavaLending) March 29, 2024

Peckshield alerts reported that the protocol was exploited for $340K worth of crypto, which included 60,349 $USDT, 8.5 $wstETH, 96,215 $UDSC.e & 77,477 $USDC. 

Lava Lending rectifies this by prompting the security squad to conduct a breach investigation and a closure on the source of the leak. On the platform, all lending markets have been temporarily paused to investigate the exploit and ensure that all needed security measures are implemented.

Exploiter Address Identified

Community members have been sharply invested in getting the exploit address and working together with the exchanges that have supported the address to obtain more information. 

On top of it, the exploit address has already been traced to other recent protocol compromises, which have made people suspicious of whether there are orchestrated actions on decentralized infrastructures.

Bounty Offered for Return of Funds

To reclaim the stolen amount, Lava Lending announces a 10% bounty for the complete and immediate return of all assets. In addition, the platform has structured a compensation plan for affected victims, which shall be enforced simultaneously with their efforts to retrieve the crypto. 

Update 3:

Community members have identified the exploit address and are working with exchanges that have funded the address to investigate. The address has also been involved in other recent protocol exploits. Lava is prepared to offer a 10% bounty for full return of funds.

— Lava | Live on Arbitrum (@LavaLending) March 29, 2024

The company is currently trying to reproduce and test the safety functions, and Lava Lending remains committed to supporting its users with updates as much as they can and prioritising their platform’s security. 

The immediate intervention of Lava Lending, along with the community’s joint effort, portrays the robustness of the security platform despite the challenges it occasionally faces. 

The Defi sector is regularly being hit by hacker attacks like the latest Prisma Finance hack, where the hacker stole $11.6 million worth of crypto. It ended on a good note, as the hack was a white hack rescue.