DeFi lending protocol Warp Finance has recovered 75% of the funds stolen in a flash loan attack last week.
December 21, 2020 | AtoZ Markets – The creators of the Warp Finance DeFi protocol have recovered $5.85 million, or 75% of the funds stolen in the December 18 attack.
On December 20th, 2020 at 0216 UTC we successfully recovered the loan collateral from the exploit, in the form of ETH/DAI-LP tokens. The value is approximately $5.85m, which is ~75% of the $7.76m lost funds.— warp.finance (@warpfinance) December 20, 2020
Full statement: https://t.co/SzrE3irylJ
Warp Finance says it has recovered stolen funds
Warp Finance has returned funds in ETH/DAI LP tokens used by Uniswap decentralized exchange to register liquidity providers’ deposits. The team did not disclose the details of the asset recovery process, but clarified that it was helped by “white hackers”.
Tokens will be distributed in accordance with the number of stablecoins on users’ accounts at the time of the attack. Initially, the project announced the transfer of assets within 24 hours but postponed the process due to the update of the list of affected addresses.
UPDATE: We have updated the snapshot of addresses to also include the addresses with funds that were deposited after the exploit and resulted in a loss. In light of this, we will delay the distribution 24 hours to ensure the snapshot for compensation distribution is correct— warp.finance (@warpfinance) December 20, 2020
The rest of the assets in DAI and USDC stablecoins were lost. The Warp Finance team has promised to use debt tokens (IOUs) to fully compensate for the damage.
Following this 75% recovery, we are taking steps to compensate the remaining losses through the issuance of an IOU token to all v2 users. More information will follow in the coming days, our present focus is security and returning the recently secured funds to owners.— warp.finance (@warpfinance) December 20, 2020
As a reminder, the Warp Finance project lost $7.7 million as a result of an attack using an instant loan through Uniswap and the dYdX DeFi platform.
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