DeFi Protocol EasyFi Reports $55M Hack Due to Metamask Admin Key Loss

[LazY]

The team behind decentralized finance (DeFi) protocol, Easyfi.network, confirmed it had been hacked to the tune of over $55 million.

Trouble first started on Monday after the project’s community informed it of the unusual behavior with EASY tokens and smart contracts. EasyFi stated that the development saw it commence an investigation to ascertain the cause of the ‘unusual behavior.’

In response to the unfortunate development, Ankitt Gaur, CEO and founder of EasyFi tweeted:

“On Monday, 19th April 2021 our team members reported the transfer of a large amount of EASY and protocol funds from designated contracts & wallets. The initial investigation revealed the possibility of compromise of mnemonic phrases.”

The project linked the attack to a possible loss of admin Metamask keys because the machine that it uses for its official transaction has not been in use for the past week.

Explaining further about the losses it suffered, Gaur noted that the attackers transferred from its official wallet a whooping 2.98 million tokens, valued at around $52 million at press time.

Although EasyFi’s smart contracts were not affected, the perpetrators succeeded in draining $6 million in USDT, USDT, and Dai from its existing liquidity.

EasyFi dismissed speculation that the attackers had got the private keys by tricking them into downloading a malicious version of Metamask, adding that the attack was only a case of its computer compromise.

EasyFi Moves to Recover Funds
Gaur disclosed that the project has made several efforts to curb further attacks and has launched a full-scale investigation into how the operation was carried out.

Part of its effort to regain control of the situation includes contacting popular exchanges such as Binance and AscendEx, formerly known as BitMax, to help it suspend deposits and withdrawals of EASY tokens while it continues with its investigations.

Gaur has issued a plea to the attackers to return the stolen funds as it could be devastating to the project and its community since it is still in its early stages. He further promised a reward of $1 million to anyone who would help the project get back the stolen funds.

EASY Tokens Plunge


News of the exploit did not go down well with EASY tokens. EASY which was trading between $25 and $26 before the news broke, plunged to $16. At the time of writing this line, EASY is changing hands at $17.35, according to data on Coingecko.

Unending DeFi Hacks
DeFi’s boom has also been accompanied by very sad tales that have left investors scratching their heads.

Since last year till date, hundreds of millions of dollars have been drained from various DeFi protocols, with some projects trying to recover from such attacks.

Just last month, Coinfomania reported that $3.8 million worth of WCRES, FDO, FUSDT, and USDT was drained from the Binance Smart Chain-based liquidity protocol and decentralized exchange DODO.

DeFi Protocol EasyFi Reports $55M Hack Due to Metamask Admin Key Loss 
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[TomPluz]

This is definitely another addition to a growing sad stories of hacking in the world of DeFi and cryptocurrency in general. And I am assuming that this is not going to be the last. And if this can go on, this would certainly erode the trust and confidence of the investing public with DeFi platforms. Now, I am hoping that eventually no single user will be losing money because of this recent hack. Maybe all DeFi sites should have some sort of a transparent insurance system in case of hacks.