{"id":12,"date":"2023-03-02T00:00:00","date_gmt":"2023-03-02T00:00:00","guid":{"rendered":"https:\/\/de.fi\/blog\/?p=12"},"modified":"2023-09-06T04:06:56","modified_gmt":"2023-09-06T04:06:56","slug":"report-over-142m-lost-in-february-crypto-hacks-and-scams-b2ce375eb9ef","status":"publish","type":"post","link":"https:\/\/de.fi\/blog\/report-over-142m-lost-in-february-crypto-hacks-and-scams-b2ce375eb9ef","title":{"rendered":"Report: Over $142m lost in February Crypto Hacks and\u00a0Scams"},"content":{"rendered":"<p>As we move into the second month of 2023, hackers and scammers are back in full swing. Despite the mild uptick in the markets, we saw losses mount to a 9-figure amount in February.<\/p>\n<p><img decoding=\"async\" class=\"legacymediumimages\" src=\"https:\/\/de.fi\/blog\/wp-content\/uploads\/2023\/06\/0PqiGlZcj73aiWnUJ.png\" alt=\"\"><\/p>\n<p>A total of $142.4m was lost in February 2023 alone, marking a year-on-year increase since 2022: by over 200%! Here\u2019s a breakdown chart by month for 2022 for comparison:<\/p>\n<p><img decoding=\"async\" class=\"legacymediumimages\" src=\"https:\/\/de.fi\/blog\/wp-content\/uploads\/2023\/06\/0U48hlf2DiJBPAEYw.png\" alt=\"\"><\/p>\n<p>Another unfortunate occurrence this month was that in February, none of the losses were recovered.<\/p>\n<p>On that note, let\u2019s take a brief look at the top 5 cases this month.<\/p>\n<p><img decoding=\"async\" class=\"legacymediumimages\" src=\"https:\/\/de.fi\/blog\/wp-content\/uploads\/2023\/06\/0ev6PDk9_ONYX8z0L.png\" alt=\"\"><\/p>\n<p><strong>1. BonqDAO \u2014 $120m Lost (Oracle Issue, February 2)<\/strong><\/p>\n<p>On 2 February, BonqDAO and AllianceBlock, two blockchain-based platforms, have suffered a major loss of $120 million due to a vulnerability in the BonqDAO smart contract. The exploit has forced the suspension of trading and liquidity to prevent the stolen tokens from being converted into other assets. The Bonq protocol has also since been suspended, and the team is currently working on a solution to enable users to withdraw the remaining collateral.<\/p>\n<p>The BonqDAO exploit occurred when its price oracle was manipulated, resulting in an increase in the WALBT price. This allowed the attacker to mint over 100 million BEUR. The attacker then manipulated the WALBT price and liquidated multiple troves, enabling them to withdraw 113.8 million WALBT and 98 million BEUR, with a combined value of over $10 million.<\/p>\n<p>The dumping of these illicit gains resulted in a significant drop in the value of both WALBT and BEUR. The WALBT price dropped by more than 50%, and the BEUR price dropped by 34%. As a result, the total loss for BonqDAO and AllianceBlock was estimated to be $120 million.<\/p>\n<p><strong>Block Data Reference<\/strong><\/p>\n<p>Examples of exploit TXs:<\/p>\n<p><a href=\"https:\/\/polygonscan.com\/tx\/0x31957ecc43774d19f54d9968e95c69c882468b46860f921668f2c55fadd51b19\">https:\/\/polygonscan.com\/tx\/0x31957ecc43774d19f54d9968e95c69c882468b46860f921668f2c55fadd51b19<\/a><\/p>\n<p><a href=\"https:\/\/polygonscan.com\/tx\/0xa02d0c3d16d6ee0e0b6a42c3cc91997c2b40c87d777136dedebe8ee0f47f32b1\">https:\/\/polygonscan.com\/tx\/0xa02d0c3d16d6ee0e0b6a42c3cc91997c2b40c87d777136dedebe8ee0f47f32b1<\/a><\/p>\n<p>Exploiter address:<\/p>\n<p><a href=\"https:\/\/polygonscan.com\/address\/0xcacf2d28b2a5309e099f0c6e8c60ec3ddf656642\">https:\/\/polygonscan.com\/address\/0xcacf2d28b2a5309e099f0c6e8c60ec3ddf656642<\/a><\/p>\n<p><a href=\"https:\/\/etherscan.io\/address\/0xcAcf2D28B2A5309e099f0C6e8C60Ec3dDf656642\">https:\/\/etherscan.io\/address\/0xcAcf2D28B2A5309e099f0C6e8C60Ec3dDf656642<\/a><\/p>\n<p><strong>2. Platypus Finance \u2014 $8.5m Lost (Flash Loan, February 16)<\/strong><\/p>\n<p>Platypus Finance, an automated market maker (AMM) providing stableswap opportunities, was recently targeted by a flash loan attack. The attacker exploited multiple asset contracts of the protocol, using a malicious smart contract with unverified source code, and stole $8,500,887 worth of assets in stablecoins. This included nearly 4,400,000 $USDC, 2,700,000 $USDT, 687,000 $BUSD, and 691,000 $DAI.<\/p>\n<p>The attacker used a weakness in the USP solvency check mechanism to take out a flash loan of 44,000,000 $USDC, which was then used to swap for 44,000,000 Platypus LP-USD. The attacker then minted 41,700,000 $USP tokens for free and swapped them for various stablecoins. As of the time of writing, the Platypus Finance team is working with third-party services like Binance, Tether, and Circle to freeze the stolen funds, and it has been reported that $USDT has already been frozen.<\/p>\n<p>However, the attacker managed to bridge 2,403,165 $USDC through Gnosis Proxy, allowing them to move a portion of the stolen funds. The platform\u2019s team has since identified and removed the malicious contract and has taken additional security measures to prevent similar attacks from occurring in the future.<\/p>\n<p><strong>Block Data Reference<\/strong><\/p>\n<p>Malicious transaction:<\/p>\n<p><a href=\"https:\/\/snowtrace.io\/tx\/0x1266a937c2ccd970e5d7929021eed3ec593a95c68a99b4920c2efa226679b430\">https:\/\/snowtrace.io\/tx\/0x1266a937c2ccd970e5d7929021eed3ec593a95c68a99b4920c2efa226679b430<\/a><\/p>\n<p>Attacker\u2019s address:<\/p>\n<p><a href=\"https:\/\/snowtrace.io\/address\/0xeff003d64046a6f521ba31f39405cb720e953958\">https:\/\/snowtrace.io\/address\/0xeff003d64046a6f521ba31f39405cb720e953958<\/a><\/p>\n<p>Malicious contract:<\/p>\n<p><a href=\"https:\/\/snowtrace.io\/address\/0x67afdd6489d40a01dae65f709367e1b1d18a5322\">https:\/\/snowtrace.io\/address\/0x67afdd6489d40a01dae65f709367e1b1d18a5322<\/a><\/p>\n<p>Transfer transactions:<\/p>\n<p><a href=\"https:\/\/snowtrace.io\/tx\/0x5e3eb070c772631d599367521b886793e13cf0bc150bd588357c589395d2d5c3\">https:\/\/snowtrace.io\/tx\/0x5e3eb070c772631d599367521b886793e13cf0bc150bd588357c589395d2d5c3<\/a><\/p>\n<p><a href=\"https:\/\/snowtrace.io\/tx\/0x76ceab91aef320d0556029861dc1dde423d100e2a85f7ca4891a924efce4ed5a\">https:\/\/snowtrace.io\/tx\/0x76ceab91aef320d0556029861dc1dde423d100e2a85f7ca4891a924efce4ed5a<\/a><\/p>\n<p><strong>3. DForce \u2014 $3.65m Lost (Oracle Issue, February 10)<\/strong><\/p>\n<p>On February 10th, the DeFi aggregator platform dForcenet fell victim to an attack, and the attacker made a profit of approximately $3.65 million.<\/p>\n<p>The attacker employed a flash loan to borrow Wrapped Ethereum (WETH), swapped it into Ethereum (ETH), and added liquidity to the wstETH\/ETH pool on Curve, earning wstETHCRV tokens. A portion of the tokens was then deposited in the Curve wstETH-CRV gauge, receiving wstETH-CRV gauge tokens, which were further deposited in the dForce wstETH\/ETH Vault, and used to mint share tokens and USX tokens.<\/p>\n<p>The attacker then removed liquidity using the \u201cremove_liquidity\u201d function, triggering the fallback function of the attack contract, which ultimately decreased the virtual price in the wstETH\/ETH pool.<\/p>\n<p>As a result, the attacker liquidated other users in the dForce wstETH\/ETH Vault, profiting from the manipulated virtual price. The stolen funds are still in the attacker\u2019s address as of now.<\/p>\n<p>The root cause of the attack was the exploitation of the process of transferring native tokens before burning LP when removing liquidity in the wstETH\/ETH pool. This triggered the callback for receiving native tokens, which the attacker manipulated to influence virtual prices and liquidate other users for profit.<\/p>\n<p><strong>Block Data Reference<\/strong><\/p>\n<p>Exploit TXs:<\/p>\n<p><a href=\"https:\/\/optimistic.etherscan.io\/tx\/0x6c19762186c9f32c81eb2a79420fc7ad4485aa916cab37ec278b216757bfba0d\">https:\/\/optimistic.etherscan.io\/tx\/0x6c19762186c9f32c81eb2a79420fc7ad4485aa916cab37ec278b216757bfba0d<\/a><\/p>\n<p><a href=\"https:\/\/phalcon.blocksec.com\/tx\/arbitrum\/0x5db5c2400ab56db697b3cc9aa02a05deab658e1438ce2f8692ca009cc45171dd\">https:\/\/phalcon.blocksec.com\/tx\/arbitrum\/0x5db5c2400ab56db697b3cc9aa02a05deab658e1438ce2f8692ca009cc45171dd<\/a><\/p>\n<p><strong>4. Orion Protocol \u2014 $3.0m Lost (Reentrancy, February 2)<\/strong><\/p>\n<p>On February 2nd, Orion Protocol, a decentralized finance (DeFi) platform that aggregates liquidity from centralized exchanges, fell victim to a reentrancy exploit resulting in a loss of approximately $3 million in Ethereum (ETH).<\/p>\n<p>The attacker utilized manipulated swaps of flash loaned stablecoins and artificially deposited assets twice before withdrawing the inflated balance. To double their balance, the exploiter created and utilized a fake token before making off with the stolen loot. However, Orion CEO Alexey Koloskov confirmed that user funds remained safe and that the damage was contained within an internal broker account.<\/p>\n<p>After the exploit, the attacker sent 1,100 ETH through the Tornado Cash mixer, which allows users to enhance their anonymity on the Ethereum network, and still holds 657 ETH in their balance.<\/p>\n<p><strong>Block Data Reference<\/strong><\/p>\n<p>Exploit TX:<\/p>\n<p><a href=\"https:\/\/bscscan.com\/tx\/0xfb153c572e304093023b4f9694ef39135b6ed5b2515453173e81ec02df2e2104\">https:\/\/bscscan.com\/tx\/0xfb153c572e304093023b4f9694ef39135b6ed5b2515453173e81ec02df2e2104<\/a><\/p>\n<p>Exploiter addresses:<\/p>\n<p><a href=\"https:\/\/bscscan.com\/address\/0x837962b686fd5a407fb4e5f92e8be86a230484bd\">https:\/\/bscscan.com\/address\/0x837962b686fd5a407fb4e5f92e8be86a230484bd<br \/>\n<\/a><a href=\"https:\/\/bscscan.com\/address\/0x3dabf5e36df28f6064a7c5638d0c4e01539e35f1\">https:\/\/bscscan.com\/address\/0x3dabf5e36df28f6064a7c5638d0c4e01539e35f1<br \/>\n<\/a><a href=\"https:\/\/etherscan.io\/address\/0x3dabf5e36df28f6064a7c5638d0c4e01539e35f1\">https:\/\/etherscan.io\/address\/0x3dabf5e36df28f6064a7c5638d0c4e01539e35f1<\/a><\/p>\n<p>Attacker contract:<\/p>\n<p><a href=\"https:\/\/bscscan.com\/address\/0x84452042cb7be650be4eb641025ac3c8a0079b67\">https:\/\/bscscan.com\/address\/0x84452042cb7be650be4eb641025ac3c8a0079b67<\/a><\/p>\n<p><strong>5. Dexible \u2014 $2m Lost (Access Control, February 17)<\/strong><\/p>\n<p>On February 17th, 2022, the multichain exchange aggregator Dexible suffered a flash loan attack that resulted in the loss of over $2,000,000 worth of Ethereum (ETH). Dexible is a decentralized exchange aggregator that allows users to trade on centralized exchanges (CEXs) without losing custody of their assets.<\/p>\n<p>The attacker was able to exploit Dexible\u2019s v2 contracts by using the app\u2019s selfSwap() function to move over 2,000,000 $USD worth of cryptocurrency from users who had authorized the app to move their tokens.<\/p>\n<p><strong>Block Data Reference<\/strong><\/p>\n<p>Attacker address:<\/p>\n<p><a href=\"https:\/\/etherscan.io\/address\/0x684083f312ac50f538cc4b634d85a2feafaab77a\">https:\/\/etherscan.io\/address\/0x684083f312ac50f538cc4b634d85a2feafaab77a<\/a><\/p>\n<p>Funds transfer example transaction:<\/p>\n<p><a href=\"https:\/\/etherscan.io\/tx\/0x4393ca721175e8bc97458f97b5118927a026e73b4a6964d16035090b05686a8c\">https:\/\/etherscan.io\/tx\/0x4393ca721175e8bc97458f97b5118927a026e73b4a6964d16035090b05686a8c<\/a><\/p>\n<p><strong>DeFi Exploit Trends<\/strong><\/p>\n<p>As can be seen from the scale of the losses in February, a large majority of losses came from just one key case: BonqDAO.<\/p>\n<p>This amounted to over $120 million being lost. Notably, this means that the biggest losses this month were due to oracle issues, which have been becoming increasingly common in recent months.<\/p>\n<p>This also makes Polygon the chain where cumulative losses this month have been the largest.<\/p>\n<p><img decoding=\"async\" class=\"legacymediumimages\" src=\"https:\/\/de.fi\/blog\/wp-content\/uploads\/2023\/06\/0d8vit9sJn6OyL3gM.png\" alt=\"\"><\/p>\n<p>Meanwhile, BNB Smart Chain unfortunately remains popular for crypto criminals, with 6 cases happening this month, as compared to 3 on Ethereum, 2 on Arbitrum and 1 on Polygon.<\/p>\n<p><img decoding=\"async\" class=\"legacymediumimages\" src=\"https:\/\/de.fi\/blog\/wp-content\/uploads\/2023\/06\/01CG8rbHE2oSJ0K.png\" alt=\"\"><\/p>\n<p><strong>Funds Recovered<\/strong><\/p>\n<p><img decoding=\"async\" class=\"legacymediumimages\" src=\"https:\/\/de.fi\/blog\/wp-content\/uploads\/2023\/06\/0zfGA3IKDy3y3tZ-Q.png\" alt=\"\"><\/p>\n<p>Unfortunately, in February, none of the losses were ultimately recovered. This is the second successive month where we are observing a break in the trend of increasing recoveries we have seen over the past few months, on a year-on-year basis.<\/p>\n<p><strong>Types of Exploit<\/strong><\/p>\n<p><img decoding=\"async\" class=\"legacymediumimages\" src=\"https:\/\/de.fi\/blog\/wp-content\/uploads\/2023\/06\/0oAGcZj-Jn1DIIyYV.png\" alt=\"\"><\/p>\n<p>In terms of frequency, smart contract exploits were the most popular among criminals. This was followed by access control issues, and of course, oracle issues that played a role in the biggest case this month.<\/p>\n<p><strong>Attack Vectors<\/strong><\/p>\n<p>In terms of attack vectors, DEXes and Tokens proved to be popular targets this month \u2014 this is unsurprising \u2014 in previous months, tokens have often been used as a vehicle to rug investors. At the same time, DEXes hold a large amount of liquidity to facilitate trading, and can therefore be attractive targets to scammers and hackers. In terms of amounts lost, though, Lending and Borrowing protocols took the prize, though this was driven by just one event \u2014 BonqDAO.<\/p>\n<p><img decoding=\"async\" class=\"legacymediumimages\" src=\"https:\/\/de.fi\/blog\/wp-content\/uploads\/2023\/06\/09Z4D3_fBNRh7CQbB.png\" alt=\"\"><\/p>\n<p><strong>Conclusion<\/strong><\/p>\n<p>In summary, the sharp increase in losses this month is a reminder of how investing in the decentralized finance (DeFi) space requires a certain level of risk management and vigilance. It is imperative for investors to inform themselves on potential threats and to take the necessary measures to safeguard their investments. At De.Fi, we recognize the importance of providing education in navigating the complex and ever-changing DeFi landscape. We are thus dedicated to providing our users with the resources they need to make informed investment decisions in the sector.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As we move into the second month of 2023, hackers and scammers are back in full swing. Despite the mild uptick in the markets, we saw losses mount to a 9-figure amount in February. A total of $142.4m was lost in February 2023 alone, marking a year-on-year increase since 2022: by over 200%! Here\u2019s a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":118,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[16],"class_list":["post-12","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-defi-security","tag-crypto-scam-reports"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.10 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Report: Over $142m lost in February Crypto Hacks and\u00a0Scams<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/de.fi\/blog\/report-over-142m-lost-in-february-crypto-hacks-and-scams-b2ce375eb9ef\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Report: Over $142m lost in February Crypto Hacks and\u00a0Scams\" \/>\n<meta property=\"og:description\" content=\"As we move into the second month of 2023, hackers and scammers are back in full swing. Despite the mild uptick in the markets, we saw losses mount to a 9-figure amount in February. A total of $142.4m was lost in February 2023 alone, marking a year-on-year increase since 2022: by over 200%! 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and\u00a0Scams","og_description":"As we move into the second month of 2023, hackers and scammers are back in full swing. Despite the mild uptick in the markets, we saw losses mount to a 9-figure amount in February. A total of $142.4m was lost in February 2023 alone, marking a year-on-year increase since 2022: by over 200%! Here\u2019s a [&hellip;]","og_url":"https:\/\/de.fi\/blog\/report-over-142m-lost-in-february-crypto-hacks-and-scams-b2ce375eb9ef","og_site_name":"De.Fi Blog","article_published_time":"2023-03-02T00:00:00+00:00","article_modified_time":"2023-09-06T04:06:56+00:00","og_image":[{"width":800,"height":420,"url":"https:\/\/de.fi\/blog\/wp-content\/uploads\/2023\/06\/0HI3tTKx0TBkJUtkq.png","type":"image\/png"}],"author":"De.Fi Security","twitter_card":"summary_large_image","twitter_creator":"@dedotfi","twitter_site":"@dedotfi","twitter_misc":{"Written by":"De.Fi Security","Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/de.fi\/blog\/report-over-142m-lost-in-february-crypto-hacks-and-scams-b2ce375eb9ef#article","isPartOf":{"@id":"https:\/\/de.fi\/blog\/report-over-142m-lost-in-february-crypto-hacks-and-scams-b2ce375eb9ef"},"author":{"name":"De.Fi 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