Crypto Whale Trashes DeFi

One of the most hyped aspects of Ethereum’s ecosystem, decentralized finance (DeFi), has been under the microscope over the past week after a double-whammy hack, with the same underlying exploit being used to steal assets from two DeFi platforms.

It began late last week when approximately $300,000 worth of Ether and imBTC, a tokenized version of Bitcoin, was swiped from a Uniswap market (notably not because of a bug in Uniswap’s protocol).

This hack inspired another attack, which was even bigger than the first. Just around 24 hours later, decentralized lending platform lost $25 million worth of cryptocurrencies, most of which was held in Ethereum and Tether.

The story has a happy ending: the money was returned by the hacker after he reportedly “doxed himself,” but it has still left many skeptical of DeFi.

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