Another Protocol in the Crypto Verse Suffers an Expensive Exploit
With the cryptocurrency industry growing to all-time highs, the number of users is increasing on the platform. As a result, the surge in users, the trading volumes and the numbers of investments in the industry are also on the rise.
It is now almost a fact that wherever there is more money and opportunities, the ill-minded individuals or groups always find their way to it. When it comes to monetary gains, everyone wants a piece of them. While the majority of the people do it in a justified and legit manner, hackers/fraudsters have an unjustified approach around the matter.
Therefore, ever since the cryptocurrency industry has started growing in 2020, the number of exploit and hack incidents has also started rising with it.
Almost every week, different cryptocurrency firms or protocols are reporting a new incident. The incidents have ranged from tampering with information on the exchanges, phishing, and monetary exploits. No matter the type or category, the hacks from the fraudsters are constantly on the rise and the number keeps growing even more.
Recently, another protocol famously known as “Spartan Protocol” ended up falling prey to an exploit. Spartan Protocol is a platform based on the Binance Smart Chain and deals as synthetic assets’ liquidity platform. According to the reports, the platform became a victim of a well-planned exploit. This resulted in Spartan Protocol losing $30 million in a single attempt.
The Spartan Protocol has revealed that the exploit was well coordinated and the hackers went for its liquidity pool. The Spartan Protocol has confirmed that the exploit for $30 million had taken place last Saturday.
According to the investigation team, the hacker was able to find a flaw in the share calculation for the liquidity pool. The hackers successfully found the flaw in the SPARTA/WBNB liquidity pool and went for it until they were able to exploit $30 million.
PeckShield, which operates as a blockchain security company has shared the above findings after preliminary investigation.
Spartan Protocol had reportedly announced that their protocol had fallen prey to an exploit resulting in $30 million stolen from the platform. According to sources, Spartan Protocol had made the announcement through the Twitter platform on Saturday.
So far, the exploit that has taken place on Spartan Protocol for $30 million is one of the largest that has taken place in the entire decentralized finance sector’s history.
At present, the Spartan Protocol exploit is on the sixth spot for being the most costly exploit in the decentralized finance (DeFi) sector. At present, the exploit at the first spot is of EasyFi, which is for $59 million, and the second one is for Uranium Finance for $57.2 million.
The exploit in the third place is for KuCoin, which was for $45 million, the fourth one for $37.5 million from Alpha Finance, and the last one for $32 million from Meerkat Finance.