Ethical Hacker Saves the Day: Recovers $5.4M for Curve Finance Amid Exploit, Unmasks Fake Refund Scam

News Desk 31 July 2023

1 minute read

An ethical hacker, known as a white hat hacker, successfully acquired approximately 2,879 Ether (ETH), equivalent to $5.4 million at a value of $1,872 per ETH, from an exploiter involved in a recent hack.

The hacker then returned the stolen funds to Curve Finance, a decentralized finance (DeFi) protocol, which had suffered losses of approximately $47 million due to exploits on some stable pools.

The exploit was a result of vulnerabilities in various versions of the Vyper programming language, causing significant stress on the DeFi ecosystem.

The ethical hacker, using the username “c0ffeebabe.eth,” employed a front-running bot to outwit the malicious hacker and secure nearly 3,000 ETH, ultimately restoring these funds to Curve Finance’s deployer address, presumably its rightful custodian.

Amid the chaos caused by the hack, fraudulent Twitter accounts pretending to represent Curve Finance and hack victims are promoting a fake refund scheme, preying on those who have already lost their funds. It’s important to note that the official Curve Finance account has not announced any refund plans as of the current writing date.

Throughout this year, there has been a surge in crypto malware, posing serious threats to cryptocurrency users. Cybercriminals have been employing sophisticated techniques to infiltrate and compromise digital wallets and exchanges, resulting in substantial financial losses for victims. In light of this growing menace, it is crucial for users to exercise caution and conduct thorough research before investing in cryptocurrencies or engaging with any crypto-related services.

Vigilance in verifying the legitimacy and security of platforms and applications is paramount, as attackers can target anyone. By staying informed and implementing robust security measures, individuals can better protect themselves from falling victim to such malicious activities and safeguard their valuable assets in the ever-evolving world of cryptocurrencies.