Just In: DAO Maker Has Been Hacked; 10,000 USDC Accounts Are Affected

As you probably know by now, the number of DeFi protocols that are getting hacked is, unfortunately, increasing on a daily basis.

Now, DAO Maker is the latest victim of these hackings and according to the latest reports, hackers managed to steal USDC from users accounts and they have been replaced by ETH.

The latest reports that can be found on CoinMarketCap reveal that “A total of 2,261 Eth, worth more than $7 million were used to transfer out USDC, as per a report from WuBlockchain.”

Potential reasons

CMC also noted that the reason to transfer ETH for USDC is believed to be somehow associated with the freezing of assets as USDC can be frozen by Circle from a specified account.

Just in case you don’t know, Tether froze almost $35 million worth of USDT from the PolyNetwork hack, the largest DeFi hack.

According to one recent estimate, “9,000 to 10,000 USDC accounts on DAO Maker could have been affected by the hack.”

CMC also noted that DAO Maker users have started reporting the missing of their pre-funding deposits. The platform did not make any comments just yet.

DeFi Ecosystem security is under scanner

DeFi has been growing and becoming a popular crypto use case and the mainstream investors are institutional giants such as JP Morgan and Goldman Sachs have shown interest in this as well.

But, on the other hand, just as CMC noted, the security vulnerabilities have been quite an important setback in this ecosystem.

The DeFi network has security flaws that seem to be internal on most occasions. Hackers have reportedly managed to alter codes in order to find loopholes in these protocols and exploit millions.

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I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.