Hacker steals $3 million ETH from PAID Network DeFi Platform

$3 million dollar was the amount that PAID Network lost to a hacker who managed to penetrate this decentralized finance DeFi app and mint around $100 million worth of paid tokens which were sold by this person.

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The hacker managed to hack through the minting feature of the contract’s token and produced almost 60 million PAID tokens which were worth $166 million when the attack took place. Then he sold 2.5 million out of those 166 and made $3 million.

Being a Defi project with tokens based on Ethereum, PAID network lost a substantial amount of Ethereum (more than 2000) after the attack. The Ethereum obtained from selling the tokens were dumped on theUnisawp market and sold on its decentralized exchange which caused a sudden sharp drop in the price of the PAID tokens by 75%. The hacker has still got $56 million of those minted tokens.

Despite the fact that Paid Network has been doing great with their audits, they were hacked which is odd. There’s a chance that the private keys of the company’s team have also been compromised.

To prevent any further loss, PAID Network is pulling liquidity out of the vulnerable contract and they wish to develop new contract to regain the token balances. They will publish a thorough report on this terrible catastrophe.

More about DeFi

DeFi has gained huge popularity in no time and has been surging. It’s interesting to know that the amount of the funds locked in decentralized finances has risen dramatically. Nonetheless, some of the host companies that offer such services have been hacked by either money launderers or a malicious actors. DeFi protocols are designed in such a way that do not comply with regulatories very clearly and people from all around the world can access them with little if any KYC information collected. Therefore, clients are told to be alert about fraud, hacks, and vulnerabilities and etc. in DeFi Projects as they are not centralized and hence can’t freeze accounts or funds.

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Tags

Crypto Hack

DeFi

PAID Network

Tags

Crypto Hack

DeFi

PAID Network