DeFi protocol Inverse Finance has been hacked: $15 million crypto loss

Mohadesa Najumi

Inverse Finance, a decentralised finance protocol that generates yield on stablecoins has been the target of a new hack, with approximately $15 million worth of crypto lost during today’s incident.

The situation was first flagged by PeckShield, a blockchain analytics firm that alerted the Inverse team to the hack on Twitter minutes after the exploit occurred.

In a series of tweets, PeckShield outlined how the hacker deposited 901 Ethereum to the protocol and used an oracle manipulation bug to manipulate the price of Inverse’s INV token.

The hacker then used INV as collateral to borrow assets and drain the protocol. Etherscan data shows that the hacker stole millions of dollars in YFI, WBTC, and Inverse’s own DOLA token from the protocol and then used decentralised exchanges such as Uniswap to trade the assets for Ethereum. 

For example, the unknown individual conducted a swap on SushiSwap worth 500 ETH.

Inverse Finance has stated the following:

“We are currently addressing the situation please wait for an official announcement”.

An Ethereum wallet connected to the hacker has already siphoned 4,200 Ethereum worth around $14.6 million through the popular transaction mixer, Tornado Cash within an hour of the exploit. The wallet contains just over $250,000 at time of writing.

INV is currently trading at around $298.32 and ranks 721st in the list of cryptocurrencies by market capitalisation at $28 million. INV’s price has dropped over 18% in the last 24 hours.