Bounty

DeFi

Million

Optimism

USDC

<p>The post <a href="https://coinpedia.org/news/pike-finance-hit-with-second-attack-in-three-days-with-losses-of-1-6-million/">Pike Finance Suffers Double Attack in 3 Days, Loses $1.98M in Smart Contract Exploit</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>Yet another shocking development in the crypto space. </p> 
<p>Pike Finance, a decentralized finance (DeFi) lending protocol, fell victim to a new exploit, resulting in a significant loss of $1.68 million in digital assets. This marks the second breach in just three days, shedding light on the ongoing vulnerabilities within the DeFi sector.</p> 
<p>A recent report by Cyvers Alerts, a blockchain security and analytics firm, revealed a troubling discovery: the hacker managed to exploit vulnerabilities in smart contracts across three different chains – Ethereum, Arbitrum, and Optimism – all on April 30.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr"><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;">UPDATE<img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;"><a href="https://twitter.com/PikeFinance?ref_src=twsrc%5Etfw">@PikeFinance</a> has experienced a security breach and cause more than $1.6M loss on <a href="https://twitter.com/hashtag/ARB?src=hash&amp;ref_src=twsrc%5Etfw">#ARB</a>, <a href="https://twitter.com/hashtag/ETH?src=hash&amp;ref_src=twsrc%5Etfw">#ETH</a> and <a href="https://twitter.com/hashtag/OP?src=hash&amp;ref_src=twsrc%5Etfw">#OP</a> chains due the initial USDC vulnerability reported on April 26th, protocol paused for upgrades. <br><br>The inclusion of a new dependency shifted storage layout, causing… <a href="https://t.co/HSqC6Y1nF4">https://t.co/HSqC6Y1nF4</a></p>— 
   <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;"> Cyvers Alerts 
   <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;"> (@CyversAlerts) <a href="https://twitter.com/CyversAlerts/status/1785586224406642892?ref_src=twsrc%5Etfw">May 1, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<h2 class="wp-block-heading" id="h-multi-million-dollar-drain">Multi-Million Dollar Drain </h2> 
<p>The attacker gained control over the output address within Pike Finance’s smart contract, orchestrating a significant transfer of cryptocurrency to their own account. The damage totaled $1.4 million in Ether (ETH), $150 thousand in Optimism (OP) tokens, and over $100 thousand in Arbitrum (ARB) tokens.</p> 
<p><strong>Déjà vu?</strong></p> 
<p>Interestingly, this breach follows a similar incident on April 26, where Pike Finance suffered a $300,000 loss.</p> 
<h2 class="wp-block-heading" id="h-exposing-the-vulnerabilities"><strong>Exposing the Vulnerabilities</strong></h2> 
<p>Both breaches exploited a critical flaw in smart contracts, giving the attacker the ability to override contractual capabilities. A new dependency introduced a shift in storage layout, creating an opening for exploitation. Using this, attackers upgraded contracts, bypassing administrative access to facilitate fund withdrawals.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">2/ We would like to highlight once again that the root cause of the exploit is independent from the functionality and robustness of the product offerings from <a href="https://twitter.com/gelatonetwork?ref_src=twsrc%5Etfw">@gelatonetwork</a> and <a href="https://twitter.com/circle?ref_src=twsrc%5Etfw">@circle</a> USDC enabled by CCTP.</p>— Pike (@PikeFinance) <a href="https://twitter.com/PikeFinance/status/1785708283984220595?ref_src=twsrc%5Etfw">May 1, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p>In response to these events, Pike Finance has taken proactive measures, offering a 20% reward for the return of funds or any valuable information aiding in their recovery. The protocol commits to a thorough investigation and pledges to strengthen its security infrastructure to prevent similar occurrences in the future.</p> 
<h2 class="wp-block-heading" id="h-crypto-hack-trends-in-focus"><strong>Crypto Hack Trends in Focus </strong></h2> 
<p>In addition to Pike Finance’s plight, CertiK uncovered a broader trend within the cryptocurrency sphere. April saw a significant decline in hacks and scams, dropping to a three-year low of $25.7 million in total losses. </p> 
<p>This 141% decrease from the previous month’s figures is attributed to a decrease in private key compromises, highlighting the importance of enhanced security measures and community vigilance.</p> 
<p>While Pike Finance is still processing the negative consequences of the last two exploits, the crypto as a whole has got to address constantly changing threats, including the high demand for security measures in the rapidly expanding DeFi.</p> 
<p><strong>DeFi innovation demands robust security. Stay tuned for updates on how Pike Finance is fortifying their defenses.</strong></p>

Pike Finance Suffers Double Attack in 3 Days, Loses $1.98M in Smart Contract Exploit

Table of Contents

CoinPedia News

Other articles published on May 2, 2024

Solana price prediction – SOL investors will soon have this decision to make

U.S. Lawmakers Propose Change to Taxation of Crypto Block Rewards

Apex Legends Global Series 2024 Split One Playoffs Kick-Off

Fans Divided Over Marvel’s Spider-Man 2 Free Trial Download

Pepe Coin Futures Buying Signals Price Rally

Bitvavo Boosts Staking Services with Figment Partnership

Join our free newsletter for daily crypto updates!