According to data on the Ethereum blockchain, Sentiment’s DeFi liquidity protocol was compromised by attackers who managed to withdraw over $500,000 worth of cryptocurrency.
The Sentiment team acknowledged the “potential issue” on Twitter and took steps to limit the risk of further loss by restricting user access to only the withdrawal function.
They were able to patch the vulnerability with the help of third-party security auditors.
While no explanation was provided by Sentiment, community members speculated that the project was hacked based on blockchain records.
Developer Pascal Marco Caversaccio suggested that the incident may have been a repeated attack, while another developer, Imaddin Amsif, believed the attacker deliberately used the self-destruct function in the Sentiment smart contract.
The Sentiment team is working with law enforcement to identify the hacker and recover the stolen funds.
In a similar incident, hackers used the Sandwich method to steal $25.2 million from the Uniswap decentralized exchange.
This method is commonly used by attackers to manipulate prices on decentralized exchanges.
A recent report by PeckShield revealed that in March, attackers stole a total of $211.5 million worth of cryptocurrencies and $10.9 million worth of NFTs.