Cover DeFi Token Crashes 90% After Hack Attack By White Hat

Decentralized finance (DeFi) protocol Cover, which recently merged with Yearn.Finance, has just been hacked. As a result of the exploit, the price of the cover token plunged. 

December 28, 2020 | AtoZ Markets – Cover's DeFi protocol token depreciated more than 90% after an unknown hacker exploited a vulnerability in the code and was able to increase emissions.

Lead developer at yEarn.Finance, nicknamed banteg, urged users to withdraw liquidity as soon as possible.

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According to him, the project team was unable to stop the release in time, as it slept.

Hours later, Grape.Finance, a “white hacker” claimed responsibility for the attack via its Twitter account, saying all funds had been returned.

As AtoZ Markets has learned, the hacker has cashed out over $4 million including about 1,400 ether, one million DAI, and 90 WBTC.The attacker earlier created 40 quintillion COVER tokens and sold $5 million worth of them on Monday morning. More than $3 million has been returned.

Binance suspends COVER trading after hack attack

Binance cryptocurrency exchange has suspended trading and accepting deposits in DeFi protocol tokens.

Within a few hours, COVER on the Binance exchange fell from $762 to $70.13. According to CoinGecko, the token is trading at $243 at the time of writing.

Cover Protocol is a peer-to-peer insurance market. It was acquired by the DeFi project yEarn.Finance in late November.

In September, a double spend bug was revealed in the SushiSwap control mechanism, and later, due to a vulnerability, the DeFi protocol lost from $10,000 to $15,000.

Read also: Origin Dollar Hacked for Estimated $7 Million

As a reminder, on December 18, the Warp Finance decentralized platform was attacked using an instant loan. The team, however, managed to recover $5.85 million from the stolen $7.7 million.

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