There seems to be a lot of uncertainty in the world of coins lately. For this reason, there have been a lot of news about hacking attacks lately. Undoubtedly, the latest of them shows that no lessons have been learned in this regard.
Bitcoin and alternative coin markets continue to attract attention. A decentralized financial protocol (DeFi) was the target of a $2 million attack. The protocol’s smart contract did not match the audited smart contract. Moreover, this important flaw was overlooked by many auditors!
Altcoin Project Attacked By Nigerian Hacker
Decentralized Financial Protocol (DeFi) Hope Finance lost nearly $2 million in crypto assets on Feb. 20 to a hacker who “demanded everything from Genesis Protocol.” DeFi Protocol said the hacker who defrauded its community was Nigerian Ugwoke Pascal Chukwuebuka. Peckshield, a blockchain security company, claimed the fraudster moved 1095 Ethereum (ETH) through Tornado Cash’s hybrid protocol.
According to a representative from the accounting firm Cognitos, the existence of a smart contract other than Hope Finance was mentioned. According to Cognitos, Hope Finance had commissioned a code review and a security study for smart contracts.
According to another Cognitos representative, the Hope Finance team updated the contract several times, but each change was “approved by its engineer.” Cognitos also stated that a representative of the Hope Finance team “deleted his account.”
Or Is The Hacker An Insider?
Some in the cryptocurrency community claim that this action by Hope Finance is a “hoax.” Markuu, a DeFi enthusiast, stated that the scammer who revealed all the details probably didn’t steal everyone’s money because there are paid services that allow individuals to scam themselves. Markuu also added, “How can you leave a project empty-handed in this way?”
What Is Rug Pull?
As Metrafone, one of the active security companies, explained, this process is called “Rug Pull”. This is a type of cryptocurrency scam where a team pumps their project’s token before disappearing with the money, leaving their investors with a worthless asset.
Rug pull happens when dishonest developers launch a new cryptocurrency, artificially inflate its price, and then take as much money as they can before abandoning it. Rug pull is an “exit scam” and a DeFi vulnerability.
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