DeFi protocol UwU Lend loses $19,3 million in an exploit

The team has suspended the project while the investigation is ongoing

10.06.2024 - 15:17

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What’s new? Experts at the blockchain analytics platform Arkham Intelligence have reported a possible hack of the decentralized lending protocol UwU Lend. Arkham noted that the protocol may have had vulnerabilities that allowed attackers to withdraw ETH, USDC stablecoins, and other assets totaling $19,3 million.

Source: X.com

What else is known? UwU Lend was launched by the former CFO of the Frog Nation project and co-founder of Canadian crypto exchange Quadriga CX, known under the nickname 0xSifu, in September 2022. The project is a fork of the Aave protocol and is used to support loans in the stablecoin Magic Internet Money (MIM).

As revealed back in late 2022 by ZachXBT, an anonymous blockchain researcher known for publishing about hacks and scams in the crypto space, Michael Patryn is hiding under the nickname 0xSifu. Quadriga CX collapsed in 2019 after its founder Gerald Cotten died in late 2018 after failing to leave other people with the keys to the exchange’s vault of customer assets.

At the time, ZachXBT also noted that prior to launching the exchange, Patryn was a member of the Shadow Crew, a group that engaged in identity theft, which he later admitted to. He also co-founded the Wonderland Protocol, from whose treasury he transferred millions of dollars worth of ETH to the crypto mixer Tornado Cash.

The UwU team announced the suspension of the protocol while the incident is being investigated. The developers assured that they are taking all necessary steps to resolve the issue as soon as possible.

Source: X.com

Comments from fake UwU accounts with phishing links purportedly to recover lost assets started appearing below the post. Interacting with suspicious websites can lead to the loss of all assets in the crypto wallet.

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