BlockSec security experts successfully thwarted an attempted theft of 2,900 ether worth $5 million from Paraspace’s decentralized lending protocol, which allows users to lend and borrow crypto assets on the Ethereum blockchain.
The vulnerability in the platform’s lending protocol allowed hackers to attempt to borrow with less NFT collateral than required, according to the security team.
Fortunately, the BlockSec team discovered the issue in time and prevented the attempted theft by intercepting a suspicious smart contract.
Paraspace has assured its users that their NFTs remain secure, but the platform has temporarily suspended lending services while an investigation is underway.
This incident follows a recent hack of Euler Finance’s DeFi protocol, which resulted in the theft of nearly $200 million in assets by a hacker using an instant loan attack.
The developers of Euler Finance offered the attacker a deal to return 90% of the stolen funds and keep 10% for themselves, or face legal repercussions and a $1 million reward for information leading to their capture. A user who lost their savings in the attack messaged the hacker, who then returned their funds.
According to cybersecurity experts from PeckShield, a total of $35.5 million worth of cryptocurrencies were stolen globally in February alone, with 141 hacks occurring on February 11. The experts also discovered that the largest amount stolen in a single hack was $9.2 million.