The Ethereum-based decentralized finance project WLEO lost approximately $42,000 worth of the WLEO token as the WLEO contract was exposed to a hack, allowing the attacker to mint WLEO and swap it with himself for ETH, exposing a critical floor in the protocol.

The method by which the attack was executed is still unclear, however, this is not the first attack of its kind for the Uniswap platform, as hackers allegedly stole between $300,000 and $1.1 million from the decentralized exchange.

Uniswap continues to be targeted by bad actors looking for new and innovative ways to siphon users’ funds from the protocol. In previous attacks, several IP addresses were revealed by bad actors, meaning that the funds could be retrieved, however, when funds do not leave the decentralized finance ecosystem, and when hackers don’t reveal IP addresses, it can be troublesome trying to isolate individual actors.

Following the hack, the Wrapped LEO token (WLEO) plummeted by 99%. There is growing concern among users of Uniswap that this type of attack could become more frequent across more liquidity pools, and that the community cannot act fast enough to secure against future hacks of this nature.

Funds have since been transferred to anonymous accounts without KYC on centralized exchange, Binance. As such, the likelihood of these funds being returned is extremely slim, if not impossible.

As the investigation continues, the WLEO team have received some support from the Leo Finance community, and appear to be forthcoming with news about the attack as and when it emerges.

Image source: Shutterstock

Leave a Reply

Your email address will not be published.