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Sonne Finance and BlockTower Capital hit by cyberattacks
Sonne Finance, a decentralized liquidity market protocol operating on Optimism and Base, has been hit by a significant cyberattack.
Blockchain security The Cyvers company detected the attack on May 15 in the early morning in Asia.
Sonne Finance’s optimism market suspended following the incident
Initially, Cyvers reported that $3 million was stolen from Sonne’s USD Coin (USDC) and Wrapped Ethereum (WETH) contracts on its Optimism channel. But the situation quickly got worse. Within 30 minutes, Cyvers updated the loss estimate to $20 million.
“Sonne Finance, please act immediately”, Cyvers warned.
Learn more: Top 5 Crypto Security Vulnerabilities and How to Avoid Them
Sonne Finance contracts exploited. Source: X/Cyvers Alert
About an hour after the warning, Sonne Finance addressed the incident on X (Twitter). The team also promised to provide more information later.
“All markets on Optimism have been suspended. The markets on the base are safe,” declared.
Following the incident, BeInCrypto discovered that the scammers were trying to exploit the situation. A fake X account, imitating Sonne Finance, urged users to revoke all approvals to avoid losses.
It shared a suspicious link to “check exploit exposure” and revoke approvals. However, the tweet was later deleted.
Learn more: Crypto Project Security: A Guide to Early Threat Detection
BlockTower Capital, a crypto investment firm, also suffered a cyberattack in a separate development. Bloomberg quoted undisclosed sources claim fraudsters partially drained BlockTower Capital’s top hedge fund. Funds are still missing and the hacker is still at large.
Additionally, the source said the company has hired forensic blockchain analysts to track the stolen money. They also recently informed their sponsors of the heist. As of now, BlockTower Capital has not made any official statement on the incident.
Indeed, hacking incidents continue to disrupt the crypto space. BeInCrypto had already reported a reduction in the frequency of hacking incidents by more than 65% from April 2024.
However, the amounts of losses remain significant. According to the SlowMist weekly security report from April 28 to May 4, 2024, total losses from crypto-related security incidents reached $71.39 million.
This attack on Sonne Finance highlights the vulnerabilities of decentralized finance (DeFi) sector. This also shows the need for strict security measures to protect digital assets.
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