BSC and Arbitrum Lost Over $6.3M After DEI Stablecoin Hack

The DEI stablecoin, issued by the DeFi protocol DEUS, got hacked in a recent event. A loss of almost $5 million was incurred on Arbitrum, while the Binance Smart Chain (BSC) lost over $1.3 million. In response, DEUS has suspended related contracts and set DEI on fire with the help of white hats. Tokens worth $3 million and $13.4 million were stolen in two separate attacks against DEUS in the past.

A public burn vulnerability was to blame for the DEI stablecoin hack, which affected the DEUS DeFi protocol, as to a recent tweet by PeckShield. A loss of almost $1.3 million was incurred on the Binance Smart Chain (BSC) as a direct result of this incident and affected ARB/ETH deployments. Strict security measures are required to stop attacks like the one allegedly carried out by a bot that infiltrated the system.

In light of this incident, it is clear that the security of the DeFi ecosystem must be continuously improved to ensure that users’ funds are safe from harm. If they haven’t already, the DEUS group would like to hear from any “white hat” hackers who successfully retrieved funds on May 5, 2023, using the DEI exploit. 

The group, which owns an Arbitrum, has called anyone who could have prevented further harm from the attack to come forward and work with them to secure the system and protect users’ funds. By showcasing persistent threats and flaws prevalent in the DeFi ecosystem, this narrative underlines the importance of effective security measures and risk management strategies.

On the other hand, this isn’t the first time DEUS’s safety has been breached. On April 28th, hackers stole $13.4 million from the Fantom network by exploiting the DEUS network. A price oracle was hacked with the help of flash loans.