In a smart contract exploit, a certain cybercriminal hacked DAO Maker of $7 million worth of USDC. The exploit happened in the early hours of August 12th (approx. 1 AM UTC).
Their CEO announced the hack in a blog post. He disclosed that they faced malicious use of one of their wallets with access to admin privileges.
The hacker first tested the exploit and stole 10,000 USDC. Later, the hacker proceeded to make 15 other transactions. The hacker was able to draw off approximately $7M. After that their security team was able to trace, contain and stop the drain of funds.
Nearly 5251 users were affected, losing $1250 USD on average per user. The company cleared that the exploit did not affect users with up to $900.
Doa Makers Team Working Towards A Solution
The firm moved the unaffected funds to a brand-new secure wallet. The users were also able to withdraw their funds from unhindered funds if they wanted to.
The company in a Twitter thread said that “Blockchain forensics company CipherBlade is already investigating, and exchanges blocked the hackers’ wallet.”
Zaknun ensured their investors and supporters that their Vaults were safe. He further added, “the hack has had no detrimental impact on our business.”
Zaknun also wrote: “Over the next five days, DAO Maker will devise a set of solutions to alleviate the incurred damages and work in full force to bring the hacker to justice through the massive forensics investigation undertaken.
They have already identified an implicated Binance account and are closely collaborating with Etherscan to learn more about the hackers’ whereabouts. Additionally, they have informed all the exchanges about the hackers’ wallet addresses.
“All affected users will be informed via email and on their DAO log-in portal. We want to thank our past and current clients who have been exceedingly supportive during this turbulent time.”
The hacker replaced the tokens with Ethereum. The reason to swap the tokens instead of removing them is that USDC provider Circle Inc. can freeze the assets.
The DAO Maker hack is not the first crypto cyberattack to have taken place in recent days.
Earlier this week, the Poly Network protocol, which is used for swapping cryptocurrency, also announced it had been hacked resulting in the loss of $611 million. Although in this case hacker turned out to be a “White hat” Hacker.