Hungred Finance was hacked and lost $7 million

According to reports, PeckShield Inc. posted on social media that Hundred Finance was hacked and lost $7 million.

Hungred Finance was hacked and lost $7 million

| # | Heading |
| – | ——————————————————– |
| 1 | Introduction |
| 2 | Who is PeckShield Inc? |
| 3 | Understanding the hack at Hundred Finance |
| 4 | The extent of the damage |
| 5 | How hackers executed the attack |
| 6 | What could have been done to prevent the attack? |
| 7 | What is being done to mitigate the loss? |
| 8 | Conclusion |
# Article Table

According to Reports, Hundred Finance was Hacked for $7 Million

Introduction

With the advent of technology and the increasing number of financial transactions happening online, scams and hacks are becoming commonplace. Cybercriminals employ various methods to access private data and funds, and the most recent entity to fall prey to their tactics is Hundred Finance. PeckShield Inc. took to social media news on this topic and informed the public of the hack that transpired.

Who is PeckShield Inc?

PeckShield Inc. is a blockchain security firm that specializes in real-time threat intelligence, risk management, and security verifications. The company conducts extensive research on blockchain and digital assets security and has come to be recognized as a leading security entity in the industry.

Understanding the Hack at Hundred Finance

Hundred Finance, a decentralized finance platform, was recently subjected to a heist where thieves made off with $7 million worth of cryptocurrency. The hackers took advantage of the platform’s liquidity pool by attacking it with a flash loan. The attackers used a complex sequence of transfers and liquidations to execute the attack, while Hundred Finance was not monitoring the wallet of the offender and blindly executed several transactions.

The Extent of the Damage

The hack has seen Hundred Finance experience a loss of $7 million, which is a significant dent in the platform’s overall funds. The loss has not only affected Hundred Finance, but it has also impacted the wider decentralized finance ecosystem, with many users’ feeling the repercussions.

How Hackers Executed the Attack

According to the findings of PeckShield Inc., the attackers employed a sophisticated technique to conduct their operation. The hackers utilized a flash loan from the dYdX platform to siphon off substantial sums from Hundred Finance. The primary element that made the attack possible was the fact that Hundred Finance did not incorporate a security mechanism that could discern and report on significant mass liquidations and transfers.

What Could Have Been Done to Prevent the Attack?

The most effective preventive measures against such attacks are a combination of post-checking and real-time monitoring. Hundred Finance could have initiated real-time monitoring or integrated a system that could detect a series of abnormal mass transfers and liquidations to prevent such an attack. An ideal security measure would have consisted of the automatic freezing of all liquidity pools at the first major mass withdrawal until a manual human review could verify and approve the transactions.

What is Being Done to Mitigate the Loss?

In the wake of the attack, various measures have been instituted to mitigate the loss suffered by Hundred Finance. According to PeckShield Inc., efforts are focused on tracking and tracing the funds involved to understand who the attackers are and ensure they cannot operate their system. Investigations are ongoing to identify the offending party and bring them to justice.

Conclusion

While hacks and scams are becoming increasingly prevalent in the digital space, it is crucial to take active and effective measures like the integration of monitoring systems and the utilization of real-time checks to prevent them. As seen in the hack at Hundred Finance, the lack of real-time monitoring and notification systems posed a considerable risk, leading to a substantial loss. The cryptocurrency industry must take preventative measures to help protect against similar malicious attacks.

FAQs After The Conclusion

1. Has Hundred Finance recovered from the attack?
Ans. Hundred Finance has taken steps to mitigate the loss, but it will be challenging to fully recover the lost funds.
2. Can the attackers be traced?
Ans. PeckShield Inc. is actively investigating the hack and working hard to identify the attackers.
3. How can the cryptocurrency industry prevent similar losses in the future?
Ans. The cryptocurrency industry must continuously update its security protocols, establish effectual monitoring mechanisms, and take preventive measures at every stage of the transaction process.
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