Hackers took benefit of smart contract vulnerability and drained $15 million by minting, but returned half of these funds to the project founder.
Founder of DeFi project Yearn Finance Andre Cronje is working on a new DeFi project which aims to bring innovation in the gaming industry. The hackers minted tokens worth $15 million after the deployment of contracts but returned $8 million to Andre Cronje.
Cronje’s Explanation of Contracts Vulnerability
When Cronje knew about the exploitation of the contracts, he said,” We posted the first clan “Spartans”. And I went to bed. Around ~3AM I was messaged awake to find out a) almost 15m was deposited into the contracts b) the contracts were exploited for the full 15m and c) 8m was sent to my yearn: deployer account.”
Hackers minted coins and then burned tokens for another cryptocurrency. “The exploit itself was a very simple one, mint a lot of EMN at the tight curve, burn the EMN for one of the other currencies, sell the currency for EMN,” he added.
As hackers sent $8 million to the Cronje’s deployer account, he said these funds would be distributed among holders. He stated,” As I am receiving a fair amount of threats, I have asked to yearn treasury to assist with refunding the 8m the hacker sent. The multisig is safer and as such, I feel more comfortable with them having the funds. Funds will be returned to holders pre-hack snapshot.”
Wait for Official Announcements
But Cronje does not stop working on the gaming project as he said, “I am still building @eminencefi. I love the metaverse and metaconomy. I am also going to continue deploying test contracts. I have over ~100 deployed contracts, of which probably >half have vulnerabilities. Please wait for official announcements.”
But he warned the community not to use random contracts. “Given some of the responses, let me be clear, do not use random contracts I deploy unless I reference it in a medium article. The contracts I deployed yesterday were purely for myself to engage with, both GIL and EMN are staging and will not be used,” he added.