{"id":113294,"date":"2020-11-16T23:54:54","date_gmt":"2020-11-16T20:54:54","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/cheese-banks-multi-million-dollar-hack-explained-by-security-firm\/"},"modified":"2020-11-16T23:54:54","modified_gmt":"2020-11-16T20:54:54","slug":"cheese-banks-multi-million-dollar-hack-explained-by-security-firm","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/cheese-banks-multi-million-dollar-hack-explained-by-security-firm\/","title":{"rendered":"# Cheese Bank’s multi-million dollar hack explained by security firm"},"content":{"rendered":"

“# Cheese Bank’s multi-million dollar hack explained by security firm <\/strong>”
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An Ethereum-based decentralized finance, or DeFi, platform known as Cheese Bank recently suffered a $3.3 million loss \u2014 the product of an early-November hack. The thieves utilized a somewhat newly-found weakness in the DeFi sector which harnesses flashloans. The Cheese Bank thieves stole the cheddar via U.S. dollar-pegged stablecoins USD Coin (USDC), Tether (USDT) and Dai (DAI). A number of other platforms have also suffered similar fates in recent days.<\/p>\n

\u201cIn the string of attacks, we have seen malicious actors use flash loans to instantaneously borrow, swap, deposit and again borrow large numbers of tokens so they can artificially manipulate the price of a specific token on a single exchange (e.g., Uniswap, Curve),\u201d blockchain security firm PeckShield said in a blog post<\/a> on Monday after citing\u00a0Value DeFi and Akropolis as two other recent similar DeFi hacks.\u00a0<\/p>\n

\u201cThis sequence is essentially the foot in the door, allowing the attacker to then exploit that exchange\u2019s anomalous pricing.\u201d<\/p><\/blockquote>\n

Value DeFi\u00a0suffered a hack similar to Cheese Bank\u00a0a few days ago. A sly character pilfered $6 million from the blockchain-based protocol, also harnessing USDC, USDT and DAI in conjunction with the effort. <\/p>\n

Flash loans, a function of the DeFi ecosystem, seem to offer a hole of sorts through which to steal funds. Malicious parties also recently hacked Akropolis, which serves as another similar incident. <\/p>\n

Referring to the Cheese Bank hack in early November, the PeckShield post detailed: \u201cThis particular hack drains $3.3 million of USDC\/USDT\/DAI from Cheese Bank by exploiting a bug in its way to measure asset price from an AMM-based oracle.\u201d The nefarius parties stole the funds on Nov. 6. <\/p>\n

Crypto’s DeFi niche has exploded in 2020, representing the latest intra-sector bubble. Uniswap serves as a popular DeFi exchange. The sector cooled for a period amid Bitcoin\u2019s soaring price, although DeFi hype app<\/a>ears to be picking up once again. <\/p>\n