dYdX Identifies Hacker In $9M SUSHI, YFI Incident
Decentralized exchange dYdX has identified a hacker responsible for a recent incident involving SUSHI and YFI on its v3 platform, resulting in millions of dollars in losses.
The hacker used $9 million from the exchange’s insurance fund to fill gaps in liquidations in the YFI market. Although the attack did not affect any user funds, it reportedly drained 40% of the insurance fund.
dYdX discovered 132 addresses connected to its v3 platform and linked to a single funding source, opening highly leveraged SUSHI long positions and increasing open interest in the SUSHI-USDC market.
The attacker replicated a similar trading pattern in the YFI-USDC market a few days later. The attacker withdrew unrealized profits from their long positions before redepositing these profits in newly connected wallets to expand their long positions.
In the long haul, the attacker used a $16 million deposit to drain $9 million from the insurance fund. dYdX has uncovered the hacker’s identity and is in contact with them.
(With inputs from Shikha Singh)
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