Hacker Transfers $2.5 Million from AAVE Lend to Tornado Cash
CryptoNewsTerminal Staff06 Aug, 2024
Hacker Transfers $2.5 Million from AAVE Lend to Tornado Cash
A hacker stole 1,000 ETH ($2.5 million) from the AAVE Lend (UwU Lend) DeFi protocol and sent the funds to the privacy mixer Tornado Cash. The attack occurred on October 20, 2023, months after the protocol lost $20 million in a flash loan attack in June. According to blockchain security firm PeckShield, the hacker exploited a vulnerability in the protocol's smart contract that allowed them to manipulate the price of a token on the platform. This allowed the hacker to borrow 1,000 ETH and then quickly sell the token for a profit, leaving the protocol with a shortfall. The stolen funds were then sent to Tornado Cash, a service that mixes cryptocurrency transactions to make them harder to trace. This makes it difficult for law enforcement to track down the hacker and recover the stolen funds. The AAVE Lend team is currently investigating the attack and has taken steps to prevent further hacks. They have also frozen the hacker's account and are working with law enforcement to apprehend the perpetrator. This attack is a reminder of the risks associated with DeFi protocols. Users should be aware of the potential risks and take steps to protect their funds.
