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DeFi Protocol dForce That Lost $25 Million To An Attack Refunds All Of Its Users

Summary:
The recent attack on the popular Chinese decentralized finance (DeFi) protocol, dForce, may have come to a happy end for customers. The company explained that over 90% of all assets had been distributed back to users in less than 24 hours.dForce Made Whole Its UsersAs Cryptopotato reported last week, an unknown attacker exploited the Chinese DeFi protocol dForce Network. By hacking its lending solution, Lendf.Me, the perpetrator managed to dramatically reduce the total value locked (TVL) in USD in dForce from million to approximately ,000.Shortly after, the situation took an unusual turn. The attacker initially sent back 5k worth of PAX to the dForce admin account, including a memo “Better future.” This began a series of transaction-based message exchanges, as Lendf.me replied by

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The recent attack on the popular Chinese decentralized finance (DeFi) protocol, dForce, may have come to a happy end for customers. The company explained that over 90% of all assets had been distributed back to users in less than 24 hours.

dForce Made Whole Its Users

As Cryptopotato reported last week, an unknown attacker exploited the Chinese DeFi protocol dForce Network. By hacking its lending solution, Lendf.Me, the perpetrator managed to dramatically reduce the total value locked (TVL) in USD in dForce from $25 million to approximately $10,000.

Shortly after, the situation took an unusual turn. The attacker initially sent back $125k worth of PAX to the dForce admin account, including a memo “Better future.” This began a series of transaction-based message exchanges, as Lendf.me replied by providing an email address to contact.

Ultimately, the perpetrator sent back almost all funds he previously stole in various cryptocurrencies.

In a blog post, Mindao Yang, the founder of Force said that all funds had been “recaptured through the efforts collaboratively made by our partners, law enforcement, investors, the community, and our team members.”

And yesterday, the well-known DeFi protocol informed that most funds had been allocated back to user accounts:

“Over 90% of assets have been distributed to users in less than 24 hours. 100% of users have been made whole in the recovery. We will disclose more future actions shortly. Stay tuned.”

Measures And Security Upgrades In DeFi

Yang also introduced some of the measures taken to fight the aftermath of this attack and to prevent future ones. Those included the current Lendf.Me smart contracts to remain disabled and permanently deprecated.

Additionally, his company will employ third-party security consultants to “assist with a full audit and to help us with fortifying our future security practices.” With their assistance, dForce will introduce a “rigorous, audited integration process when introducing assets into the ecosystem.”

Just a few days after dForce, another DeFi project, PegNet, experienced a 51% attack on its network. A group of rogue miners took control and artificially inflated a wallet balance of $11 up to $6.7m. However, they couldn’t liquidate the assets and burned them instead. A leading figure behind PegNet explained that as the popularity of DeFi increases in time, more sophisticated attacks could follow.

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