The multi-investment DeFi platform Dao Maker has become the latest victim to a security breach in the industry. The attackers have managed to affect over 5,000 accounts holding USDC.
At first, Wu Blockchain took it to Twitter to indicate that the popular platform has fallen victim to a hack.
The perpetrators supposedly transferred out USDC from about 9,000 or 10,000 such accounts and replace the funds with 2,261 ETH (worth approximately $7 million as of writing these lines).
As the story is developing, the reason why the hackers decided to replace the funds is still unknown. However, most speculations indicate that the USDC might have been previously frozen by Circle.
A similar example came recently as Tether froze millions of dollars worth of USDT after the infamous PolyNetwork hack.
Hours later, DAO Maker provided its side of the story. The statement confirmed that the protocol “faced malicious use of one of our wallets with access to admin privileges.”
The unknown perpetrators ultimately stole 10,000 USDC and attempted 15 more transactions afterward. Thus, they were able to “siphon approximately $7 million,” until DAO Maker’s security team “was able to trace, contain, and stop the drain of the funds.”
Unlike the initial estimations, the statement indicated that 5,251 users were affected, losing $1,250 on average. The team behind the protocol decided to move the unaffected funds to a new wallet.
After contacting Cipher Blade – a blockchain forensics company – the two parties identified an implicated account on Binance and are “closely collaborating with Etherscan to learn more about the hackers’ whereabouts.”
DAO Maker also assured that its Vaults are safe and the hack has “had no detrimental impact on our business.” The team will “devise a set of solutions to alleviate the incurred damages” in the following days and will work in “full force to bring the hacker to justice.”