DEUS Finance suffers a $6 million loss as a result of the stablecoin hack

By: Mark Jessy

DEUS Finance suffers a $6 million loss as a result of the stablecoin hack

May 7, 2023 5:40 AM

A simultaneous assault on the BNB Smart Chain was conducted with the Arbitrum network as the attacker's target. According to data compiled by CoinMarketCap, the price of DEI fell by 30% after the hack.

Security issues with DEUS's stablecoin DEI have resulted in a loss of nearly $6 million for the Decentralized Finance (DeFi) system. PeckShield, a blockchain security company, reports that on May 5, a hacker took advantage of a flaw in the BNB Smart Chain (BSC). 

More than $1.3 million was stolen in a bot-initiated hack on the BSC. Over $5 million in ARB/ETH deployments were compromised when the attacker struck the Arbitrum network. Users on Twitter said→ a simple implementation flaw was to blame for the token contract's problems.

The attack was verified→ by the protocol, which then suspended all active contracts and destroyed all DEI coins. The DEUS team tweeted, "We are currently in the process of comprehending the actual backing of DEI tokens," and promised a "comprehensive recovery and redemption plan" once all the token balances and snapshots have been analyzed.

Collateralized via DEI, third-party instruments based on the Fantom protocol can be issued and traded. According to data compiled→ by CoinMarketCap, its value has decreased by 30% during the past 24 hours. At press time, the stablecoin was trading at $0.20, down from its previous $0.30 peg. After Terraform Labs' demise in 2017, the stablecoin likewise stopped being pegged to $1. 

DEUS Finance has been breached previously as well. In March 2022, hackers used this protocol to conduct a flash-loan attack that cost users over $3 million in Dai (DAI) and Ether (ETH). Peckshield has previously disclosed that the exploiters had been making use of a coin mixer called Tornado cash to launder the loot.

DEUS Finance is a decentralized exchange built on the Ethereum blockchain that facilitates the trading of both digital and non-digital goods, such as commodities.