$4.5M Related to Curve Finance has been Retrieved

An ethical hacker is reported to be able to recover 2,879 Ether from an exploiter and then return it to the decentralized finance (DeFi) protocol Curve Finance. The recovered assets were subsequently transferred back to the Curve deployer address, which appears to be its legitimate custodian.

Curve Finance was Exploited due to Vyper Vulnerability

On July 30, a white hat hacker going by the handle “c0ffeebabe.eth” recovered parts of the hacked assets and gave them back to Curve Finance that was exploited since some versions of the Vyper programming language had defective reentrancy security locks. 

3,000 ETH has been Retrieved

Notably, the hacker is said to have used a front-running bot against the malevolent hacker to secure nearly 3,000 ETH, which is currently valued at $5.4 million. 

Curve Finance’s losses are projected to be over $47 million. Furthermore, DeFi protocols that used vulnerable versions of Vyper were taken advantage of, putting the DeFi ecosystem under pressure. 

Twitter Accounts are Pretending to be Curve Finance

Notably, the verified Curve Finance account had not yet shared an announcement for a reimbursement. However, some accounts on Twitter are pretending to be Curve Finance and hack victims have been advertising a bogus refund scheme aimed at those who have lost their assets due to the current hack, which serves to add fuel to the fire.

Losses of $656M in H1 2023

Meanwhile, as the crypto business keeps on garnering global interest, bringing investors looking for profitable prospects, the industry experienced immense losses of roughly $656 million in the very first half of 2023 due to hacks, scams, and rug pulls. According to a July research published by Web3 security firm Beosin, 108 Protocol attacks resulted in $471.43 million damage. 

However, when comparing H1 2023 to the previous year, the security firm observed a significant drop in overall loss from hacking in Web3. The overall loss from attacks in H1 2022 was predicted to be $1.91 billion, highlighting the disastrous effects of hacking during that time period.