HOME CATEGORIES WRITE AND EARN 🔍
CATEGORIES WRITE AND EARN MORE

CRYPTO NEWS

Your favorite crypto news blog

DeFi Protocol dForce Successfully Compensates All Users After Last Week’s $24.95 Million Hack

Other 2020/04/28 15:34 by Brenda Ngari
DeFi Protocol dForce Successfully Compensates All Users After Last Week’s $24.95 Million Hack

Chinese decentralized finance (DeFi) protocol, dForce was hacked last week but the startup promised to make users whole again. The platform announced that it has fully compensated the victims through the funds that the hacker returned.

dForce Offers Full Refund After $25 Million Hack

As you will recall, a hacker exploited a vulnerability in the ERC-777 token pools to get to the funds of dForce, a Chinese-based DeFi protocol. The hacker then used the information learned from this breach to access the protocol’s Lendf.Me lending platform and drain the smart contract of approximately $24.95 million of liquidity.

Interestingly enough, the hacker returned the funds 48 hours later after accidentally exposing his identity. These funds have now been redistributed to their rightful owners.

A tweet by dForce on April 27 noted,

 “Over 90% of assets have been distributed to users in less than 24 hours. 100% users have been made whole in the recovery. We will disclose more future actions shortly. Stay tuned.”

In a statement issued by the company on Sunday (April 26), the firm reiterated CEO Mindao Yang’s words that the platform had recovered most of the stolen cryptocurrencies with the help of its partners, law enforcement, investors, the community, and its team.

Procedure For Asset Withdrawals And Loan Repayments

Users of the platform are to request for withdrawals by simply logging in to the “Asset Recovery System” and confirming the Terms and Conditions. 

The withdrawal requests will be addressed on a first-come-first-serve basis due to the huge volumes. The users who do not make any withdrawal requests will receive their refunds automatically within seven days.

Similarly, users with outstanding loans should repay the full amount within seven days before claiming their collateral. If they do not repay the borrowed assets by the due date, their collateral will be sold to repay outstanding loans and the remaining amount will be returned to the customer’s address in stablecoin form. Those who repay their loans will receive their collateral within 24 hours. 

Measures To Ensure Asset Security Moving Forward

The statement on Sunday then described various measures that the dForce team has adopted to deal with the after-effects of the hack and to prevent any future attacks.

While refunding the victims of the hack is dForce’s “absolute priority” right now, the company will also be taking several actions to ensure that the assets under its management are secure, the post noted.

The company explained that it has been working tirelessly in the last three days to audit asset data using internal data and a third-party and to finalize the post-asset-redistribution plan to investors. 

The firm stated that it has indefinitely paused the Lendf.Me contract due to the recent exploitation. Moreover, it has now built an Asset Recovery System to make it easy to return the stolen funds to their respective users’ original addresses.

The post also mentions that since the hacker returned the funds, the company has decided to rebalance most of the portfolio back to the last state before the attack. All the assets are now stored safely in a cold wallet. 

Additionally, according to Mindao Yang’s blog post last week, dForce will be tapping top-rated third-party security consultants “to assist with a full audit and to help us with fortifying our future security practices.” With the help of these consultants, dForce “will introduce a rigorous, audited integration process when introducing assets into the dForce ecosystem.”

0 Like(s)



You should also read...

Altcoins 28/11/19 19:43 by Guest Author
TROY TRADE Announces Token Sale on Binance Launchpad
Binance, the world’s largest crypto exchange, revealed on Wednesday that the ninth initial exchange offering on the Binance Launchpad will be TROY TRADE,  a global brokerage platform. The upcoming ...
Read More
Crypto 16/12/19 04:09 by Avi Mizrahi
Uphold Users Gain Access to Salt’s Crypto-Backed Loans
Uphold users have gained access to loans from Salt Lending using crypto holdings such as bitcoin cash (BCH) as collateral. The digital money platform has more than 1.5 million users globally and has p...
Read More
Altcoins 21/04/20 15:42 by Samuel Wan
2 Reasons Why Ethereum DeFi Hacker Returned $25 Million in Hacked Funds
The weekend saw an exploit of the dForce DeFi protocol which netted hackers $25 million worth of crypto. This consisted mostly of Ethereum and stablecoins, with Bitcoin bringing up the tail end of ass...
Read More
Crypto 18/05/20 21:32 by Livine Sanchez
Wize Capital – Quality Trading Platform For Beginners and Veteran Traders
Are you a business-oriented individual who is seeking ways to earn extra income? You may not be alone because there is a large population of people who may be struggling to live up to their financial...
Read More
Altcoins 25/05/20 10:23 by Livine Sanchez
Currency.com Exchange – Fully Regulated Tokenized Securities Exchange
One of the challenges faced by cryptocurrency investors is the inability to have access to the financial markets. These investors tend to exchange their coins for fiat currency. Because of this, most...
Read More