Cryptocurrency industry is often jolted by the news of online attacks and frauds leaving the crypto industry highly concerned about losing their funds and assets in such incidents.
The latest reports of Pickle Finance, a popular decentralized finance protocol being hacked by attackers, have again highlighted the magnanimous threat of hackers exploiting the loopholes and attacking crypto systems.
Pickle Finance Lost $19.7 Million in Pickle Jar DAI Attack
Reportedly Pickle Finance lost more than $19.7 million in its decentralized stable coin from a Pickle Wallet.
The company Tweeted the same from its official handle, stating that the Pickle. JAR DAi has been exploited, and they are investigating the matter. The news spread like wildfire in the crypto circles, impacting the price of the Native token to a whopping 50.12 percent.
Pickle Finance notified its community about the hack through an official Medium blog, stating that around 19,759,355 DAI was drained. The team and a group of White Hat hackers, then started to investigate the matter and provide remedial steps. Upon analysis and investigation, they determined the underlying cause and modus operandi of the hack.
The flash loan attack on the DAI Pickle Jar impacted Pickle’s prices massively as most of the farmers withdrew their collaterals after the team requested them to do so. While the team and white hat hackers examined the hack, they observed that the hacker was well versed with Ethereum Virtual machine and Solidity and thus exploited the eight flaws in the system. The company notified that it has now patched the smart contract, which led to the attack. The Pickle Finance price tumbled badly after the news broke out and was able to resurrect only to 11.75 even after the fix has been announced.
Later the team updated the announcement stating that the attackers took advantage of the various flaws in the system; the attackers created a highly complicated and sophisticated exploit to “Carry out the Heist.” The team called the attack an “Evil Jar,” which they have efficiently reverse engineered.
The Pickle initially encouraged the LPs to pull funds from the jars until the issue is corrected.
As per the updated official blogpost, the Pickle Finance team executed a Timelock transaction to allow the multi Sig wallet to revolve all the offending code that led to the hack.
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