December 11, 2023

Hackers withdrew more than $500,000 in cryptocurrency from the Sentiment Protocol

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Hackers withdrew more than $500,000 in cryptocurrency from the Sentiment Protocol

Attackers were able to withdraw more than half a million dollars in cryptocurrency from the DeFi liquidity protocol Sentiment. This is evidenced by data from the Ethereum blockchain.

The Sentiment team announced via Twitter thatthey are aware of a “potential problem” with the protocol. “To reduce the risk of further use of funds,” project representatives explained, Sentiment users can only use the withdrawal function.

“With the help of third-party security auditors, the Sentiment team was able to release a fix that eliminated the vulnerability,” company representatives reported.

Although Sentiment did not provide an explanation,community members speculated that the project was hacked based on blockchain records. Developer Pascal Marco Caversaccio suggested that the incident was likely the result of a replay attack. And another developer, Imaddin Amsif, believes that the attacker specifically used the self-destruct function in the Sentiment smart contract.

Sentiment officials said they are working closely with law enforcement to identify the hacker and recover misappropriated user funds.

Earlier it became known that hackers usedvulnerability in the security system of the decentralized exchange Uniswap for theft of $25.2 million worth of cryptocurrency using the Sandwich method. This method is commonly used by attackers to manipulate prices on decentralized exchanges.

According to a recent report from PeckShield, in March, attackers stole $211.5 million worth of cryptocurrencies and $10.9 million worth of NFTs.