Another Day Another DeFi Hack: FinNexus Protocol Exploited for $7.6M

DeFi protocol FinNexus was hacked for $7.6 million in the late hours of May 17, as the Defi industry appears to be turning into a hackers paradise.

May 18, 2021, | AtoZ Markets – The FinNexus decentralized options protocol has fallen victim to a malicious  hack attack. according to the announcement on the developers project's Twitter page.

DeFi protocol FinNexus hacked

According to the FinNexus team, the ERC-20 smart contract has been hacked. However, industry experts believe that the developers themselves could have been the cause of the incident, since someone gained access to the administrator key. The developers have already urged users to withdraw funds from the pools.

We regret to inform our traders and investors that the FinNexus erc20 contract appears to have been hacked. For security reasons, withdraw your funds from the pools,” the project's Twitter page says.

According to analyst Chris Black, an unknown person stole the protocol administrator key. However, Black does not exclude that someone from the development team is behind the incident. In addition, as analyst Igor Igamberdiev found out, an unknown person changed the address of the owner of the protocol for issuing FNX tokens. The new address generated 323 million FNX tokens worth about $6 million for the Ethereum network and 60 million FNX worth $1.6 million for the BSC network.

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A series of DeFi crashes

At the time of this writing, the developers of the protocol did not say what exactly caused the change of address. The developers again called for the withdrawal of cryptocurrency from all pools, as well as to avoid buying FNX on exchanges.

FinNexus is a cross-chain decentralized finance (DeFi) protocol for writing options on multiple assets from a single secured pool. This is the fifth DeFi protocol attacked this month after Spartan, Rari Capital, xToken, and bEarn .

Amid the incident, the FNX token fell in price by 90% to $0.03. The drop was sharp, indicating that a huge portion of the protocol token collateral was liquidated during the attack. Moreover, it remains unknown whether the FinNexus developers will financially compensate for the losses of customers.

What do you think of the latest DeFi hack? Let us know in the comments section below.

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