ShadowFi Exploit Allows $300k Liquidity Drain, Massive Cryptocurrency Loss

cryptonews.com:

ShadowFi tweeted about the cyber attack. Hackers made an attack on DeFi systems possible by a crypto-private effort known as ShadowFi. A prominent blockchain security firm, Peckshield, sounded the alarm and revealed the exploitation cost around $300,000.

According to ShadowFi, an attacker drained its liquidity pool contract, leaving it with zero funds. Peckshield claims that the protocol was exploited due to flaws in the SDF token. Due to this vulnerability, anyone might burn the token without authorization. 

Peckshield added that the amount of money the hacker took was around $300 thousand, or 1,078 $BNB. The hacker was named NeorderDAO by the blockchain security company. A spokesperson for the company said the hacker's name was found in the company's internal database.

Peckshield claims that the hackers deposited the looted funds into Tornado Cash. Tornado Cash has caused more harm than good for the cryptocurrency sector. Criminals have sent funds from compromised systems using encryption software. 

Since 2019, the program has been used to launder almost $7 billion from numerous cryptocurrency exchanges. Even the notorious North Korean hacking gang Lazarus Gang has utilized Tornado Cash to transfer around $455 million. And hackers stole almost $96 million from Harmony Bridge using Tornado Cash. 

Similarly, Nomad was able to wire $7.8 million thanks to the privacy app. On September 1st, KyberSwap was the target of an attack that incurred damages of approximately $265,000. KyberSwap admitted the hack, although it said it was looking into what happened.

 After this, the corporation promised the hacker a 10% reward for recovering the looted funds. In the wake of the KyberSwap assault, hackers turned their attention to the