After losing $25 million to hackers, dForce CEO releases a statement mentioning that hackers have tried to contact them.
Recently we reported that decentralized finance company dForce’s lending protocol Lendf has lost almost 99% of its managed funds in an attack that drained almost $25 million worth BTC and ETH. The attack was performed at 8:45 Beijing time Sunday at block height 9899681. Some DeFi protocol builders speculate that the attack was performed by utilizing a vulnerability in imBTC, an ERC777 Ethereum token pegged 1:1 with bitcoin.
Commenting on the recent scheme of things dForce CEO Mindao Yang has released a public statement, stating that the hackers have tried to contact them and it seems that they concluded their attack.
Yes I know that this meme is getting a bit stale and I know this also makes me a gigantic piece of shit but it just had to be done. I'm sorry pic.twitter.com/7RTO6GpYKj
— Larry Cermak (@lawmaster) April 19, 2020
He went on to add, “We are doing everything in our power to contain the situation. We have contacted law enforcement in several jurisdictions, reached out to asset issuers and exchanges to track down and blacklist the hacker(s) address and engaged our legal teams.”
While taking full responsibility for the mishap, Yang said, “This attack was my failure. While I did not execute it, I should have anticipated it and taken actions to prevent it. My heart goes out to everyone harmed, and I will do everything in my power to make this right. I sincerely apologize to our users, to our new investors, and to my team for letting them down.”
To give a better idea to users about the hack, Yang urged them to visit Peckshield’s report. Peckshield is a Chinese blockchain security firm.
The report suggests, “It is also important to notice that ERC777 itself is a community-established token standard with its advanced features for various scenarios. However, these advanced features might not be compatible with certain DeFi scenarios. Worse, such incompatibility could further lead to undesirable consequences.”
The idea of negotiating with hackers is a long tradition in the crypto community. Post attacks, hackers are often offered incentives to reveal technical vulnerabilities that allowed them to carry out the heist. It would be interesting to note, how things pan out in this case.