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- On September 3, 2022, ShadowFi noted the attack on its Twitter account.
- The attack caused exploitation that costs around $300,000.
ShadowFi, a decentralized financial payment network, reported an attack on DeFi systems. Due to this attack, the cause costs around $300K. The information of the attack was made public when Peckshield detected the exploit. Peckshield, a popular blockchain security firm shared the details on its Twitter account regarding the attack.
Peckshield’s Report
The attacker depleted ShadowFi’s liquidity pool contract and left it at zero dollars, as ShadowFi mentioned. While the Peckshield defied that the vulnerabilities in SDF tokens made protocol exploitation easier. This process burned the token as it does not require anyone’s permission.
As per the report of Peckshield, the hacker stole around 1,078 BNB, or $300K. The security firm revealed the hacker as NeorderDAO and claimed the name was also recorded in its internal database.
Peckshield believes that the stolen funds were transferred to Tornado Cash. The tornado cash somewhere affects the crypto industry and the encrypted software used to send money from compromised networks. This software supported the laundering of more than $7B from different crypto exchanges in 2019.
It must be noted that these kinds of hacks become very harsh for crypto holders and authorities. The Tornado Cash ban by the U.S. regulatory ended the specific security gaps.
Besides this, Tornado Cash is still operating without following any prohibition. The ShadowFi used the crypto mixer that leads toward the exploit. It was then transferred to Tornado after the exchange of ~8.4 SDF tokens for 1078 BNB.
Over this ShadowFi assures finding the solution with its team and commitment to the consumer’s best interests. It requests the users to be calm while the team identifies the solution and solves the issue.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
