Defi news - More than $1.3 million was stolen in a bot-initiated attack on the BSC.
- The stablecoin DEI has fallen from its $0.30 peg and is now trading at $0.20.
Over $6 million worth of the stablecoin DEI used by the Decentralized Finance (DeFi) protocol DEUS Finance was stolen. PeckShield, a blockchain security company, claims that on May 5 a hacker took advantage of a flaw in the BNB Smart Chain (BSC).
More than $1.3 million was stolen in a bot-initiated attack on the BSC. Over $5 million in ARB/ETH deployments were compromised when the attacker struck the Arbitrum network. Twitter users speculated that a simple technical flaw in the token contract was to blame.
Recovery and Redemption Plan Underway
The assault was verified by the protocol, which then suspended all active contracts and burned all DEI tokens. The DEUS team tweeted, that they are presently comprehending the actual backing of DEI tokens, and promised a “comprehensive recovery and redemption plan” after all the token balances and snapshots have been analyzed.
Update on DEI tokens security breach
Yesterday:
In response to the security breach, all contracts were paused, and DEI tokens on chains were burnt to prevent further damage— DEUS (@DeusDao) May 6, 2023
In the context of collateral mechanisms for third-party instruments based on the Fantom protocol, DEI plays a key role. According to statistics compiled by CMC, its value decreased by 30% post the news.
The stablecoin has fallen from its $0.30 peg and is now trading at $0.20. In the aftermath of Terraform Labs’ demise last year, the stablecoin also lost its peg.
DEUS Finance has been breached before as well. In March of 2022, the protocol was used in a flash-loan attack that resulted in over $3 million in Dai in damages. Coin mixing tool Tornado cash was used by the exploiters, as reported by Peckshield at the time.
The team has offered a 20% white hat bounty if funds are returned back. It also promised no legal actions if the hacker returns 80% of the funds.
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