Over the weekend, Hundred Finance’s multi-chain lending protocol was targeted by hackers, resulting in a loss of $7 million.
The PeckShield analytics platform reported that the attacker used a technique where they donated 200 WBTC to manipulate hWBTC’s rate and subsequently drained the lending pool with a small amount of just 2 wei.
In response to the incident, Hundred Finance notified its users via social media, indicating that the issue seemed to stem from their Optimism Layer 2 scaling solution.
Following the announcement, users attempted to analyze the situation themselves and discovered that the hacker had used a sophisticated method of issuing, transferring, borrowing, redeeming, and liquidating tokens.
In an effort to resolve the situation, Hundred Finance extended an offer to negotiate with the hacker and stated that it was in communication with several data protection teams.
Meanwhile, news broke of another hacker who was sentenced to a year in prison for stealing over 51,000 BTC from Silk Road.