UwU Lend Falls Prey to $20M Flash Loans Hack, Founder Launches 20% Bounty to Retrieve Funds

The post UwU Lend Falls Prey to $20M Flash Loans Hack, Founder Launches 20% Bounty to Retrieve Funds appeared first on Coinpedia Fintech News

UwU Lend lost $20 million to hackers on Monday through price oracle manipulation. This came as a shock to the entire crypto community as the attacker was able to use a massive flash loan to take advantage of a protocol in its price feed.

Details of the hack

The attacker was able to initiate the attack through a flash loan of $3. 15 billion assets according to CertiK alerts. These assets were strategically split: To establish a leveraged position through recursive debt, half of them were borrowed, and the remaining half affected the value of five oracles and pumped up the sUSDE token. 

Through continual liquidations, the attacker received additional uWETH tokens. Subsequently, the hacker restored the prices to normal and returned the flash loan while making away with about $19.3 million worth of assets in three transactions. At the time of writing this article, the hacker’s wallet contains approximately $19. 4 million.

Michael Patryn’s offer

Michael Patryn, also known as Michael Patryn or 0xSifu, is one of the co-founders of the now-defunct Quadriga CX, directly engaged with the hacker. Patryn even put up the reward of 20% of the stolen assets for their recovery. “We are giving a 20% white hat bounty of any funds taken,” the message from Patryn was in Ethereum. “You will have no exposure as to our continuing this and no exposure as to law enforcement matters. ”

This offer is equivalent to about $4 million to the hacker, given they surrender the rest of the $16 million in crypto-coins. This approach though common in the crypto market is usually left unexploited by hackers, but there are exemptions.

UwU Lend is another lending protocol that was created in 2022 as the clone of the Aave lending protocol and was attacked due to the vulnerability of the fact that price oracles were so simple to manipulate. Manipulating a flash loan, the hacker was able to drain $20 million from the protocol by employing a loan that could have reached up to $4 billion.

Also Reda: Orbit Chain Hacked for $48 Million: Here’s What Happened