Another DeFi Hack: DEGO Finance loses over $10M to Attack

With the newest breach on Dego Finance, the incidence of DeFi assaults is becoming more concerning.
Another DeFi Hack: DEGO Finance loses over $10M to Attack

On February 10, Dego Finance was hacked. Soon after, it partnered with well-known cryptocurrency exchanges including Binance, Kucoin, and to close deposits for DEGO, its native governance and equity token. The protocol also advised Uniswap, Poloniex, PancakeSwap, WazirX, and other exchanges to follow suit in order to reduce losses.

Dego Urges users to stop making depsosits

Dego Finance urged users in a Tweet to desist from making deposits until they’ve rectified the cause of the breach.

#DEGOWe’ve always been there. Today is a sad day. We are investigating the cause and trying to recover the loss.-L — DEGO (@dego_finance) February 10, 2022

“We’ll keep all stakeholders updated on the latest developments, as well as talk to reputable security teams on how to identify the hacker and retrieve loss. We would ask the hacker to come forward and communicate.”

The exploiters withdrew more than $10 million from @dego_finance & @CocosBCX !The illegal assets are currently here ETH&BSC: 0x118203b0f2a3ef9e749d871c8fef5e5e55ef5c91Here is the drained wallets list: — PeckShieldAlert (@PeckShieldAlert) February 10, 2022

$10M lost to the attack

The official Twitter account for Dego Finance said that its own address, which provided liquidity on prominent decentralized exchanges such as Uniswap and PancakeSwap, had been hacked. As a consequence, the team’s DEGO pairs liquidity was depleted.

The hackers were also encouraged to come forward and engage with the DeFi platform.

The exploiters took more than $10 billion from Dego Finance and GameFi Incubator Cocos-BCX, according to Peckshield, a blockchain security and analytics firm. According to the company’s data, money from 13 addresses belonging to Binance Smart Chain (BSC), Ethereum, and Cronos were emptied.

The effect of the hack on Dego

Following the attack, DEGO, Dego Finance’s token, suffered a significant hit. In the early hours of Thursday morning, it fell over 20% from $4.50 to $3.65.

Dego Finance, for the uninitiated, launched in 2020 and featured both DeFi and NFT technologies. In addition to auctions and trade, it claimed to be an open-NFT environment that enabled users to issue non-fungible tokens and start NFT mining.

It also provides a cross-chain architecture to help blockchain startups grow their user base, distribute tokens, and create more diversified NFT-based applications. Binance announced the project’s inclusion in the Innovation Zone in March 2021.

In recent years, rug pulls and hacks have continued to cause havoc in the DeFi domain. 2021 has been a watershed moment for DeFi, as well as a watershed moment for negative actors in space. Rug pulls, for instance, represented 37% of all scam income last year, compared to only 1% in 2020. Little has changed this year, as similar incidents continue to make headlines.