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Market News

DeFi Lender Sonne Finance Drained of $20 Million in Exploit

Written By Gabriel Mael Gabriel Mael
Published 2024-05-15·Updated 2 years ago
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Last updated: May 16, 2024 1:16 PM
Published 2024-05-15
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Last updated: May 16, 2024 1:16 PM
Published 2024-05-15
DeFi Lender Sonne Finance Drained of $20 Million in Exploit

Sonne Finance, the DeFi lending platform based on Optimism, a top Ethereum Layer 2 network, suffered a security breach which caused a great loss of about $20 million. The attack, carried out in two stages, hit the USDC and WETH contracts of Sonne Finance, and the amount stolen by them was $3 million’s at first and then $17 million in the later time. Investigators are on the track of the person responsible for this crime. 

https://twitter.com/SonneFinance/status/1790535383005966554

 Fiat’s USD-stabilized Optimism coin might make a 74% loss to the users who do not exit the markets in time. Sonine Finance has stopped the activities of optimism in order to look into the problem. 

Get out of @SonneFinance while you can, there is still about mid 6 figures of borrow liquidity available.@overnight_fi's USD+ on Optimism (not other chains!) is unfortunately hit by this too, a 74% loss if the markets are not exited in time.https://t.co/uDjQq31WtR https://t.co/7Uhupcfvpi pic.twitter.com/2IAyXXwYIH

— Saul (@SaulCapital) May 14, 2024

Although the real reason is still under study, some believe that it could be connected to the lending market that has been added recently. The initial coin’s native token, SONNE, experienced a 15% fall after the exploit, which brought the market cap of the platform to $4.25 million.

Sonne Finance Chart
source: DefiLlama.com

This event proves that the DeFi space continues to be a place with a lot of security problems. The emergence of DeFi has led to more and more users using this technology, therefore, it is of utmost importance to ensure strong security measures are in place so that the confidence of the users will not be shattered and the attacks will not be repeated in the future.

Also Read: El Salvador Mines 474 BTC with Volcano Geothermal Energy

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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TAGGED:DeFiEthereum (ETH)
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By Gabriel Mael
Gabriel is a crypto journalist on a mission to decode the future of finance. He breaks down complex concepts, keeping you informed on the hottest trends and innovations in the ever-changing crypto world.

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