UwU Lend Protocol fell victim to a hacking incident on Monday, June 10, resulting in a loss of almost $20 million in a cryptocurrency exploit that is still ongoing.
The exploit, totaling $14 million, was initially detected by on-chain security company Cyvers, as detailed in a post on June 10. UwU Lend is a decentralized finance (DeFi) protocol that serves as a liquidity market where users can deposit and borrow digital assets.
Within an hour of Cyvers’ alert, the hacker managed to steal over $20 million in the ongoing exploit. Cyvers’ Chief Technology Officer and co-founder, Meir Dolev, revealed that the incident is being thoroughly investigated and has impacted multiple assets.
In the aftermath of the attack, it was unveiled that the hacker utilized funds from the crypto mixing protocol Tornado Cash to carry out three malicious transactions. This breach is a part of the escalating trend of crypto hacks, with cybercriminals pilfering digital assets worth $542.7 million in the first quarter of 2024 alone, marking a 42% increase from the same period in 2023.
The surge in cyber exploits can be attributed to the rising value of cryptocurrencies, attracting more malicious entities to the space. Additionally, attackers are actively seeking out vulnerable targets, as noted by Mriganka Pattnaik, co-founder and CEO of crypto risk and intelligence platform Merkle Science.