Yet another hack attack targeted the DeFi world. Blockchain security company PeckShield reported that Zunami Protocol, a DeFi yield aggregator, was the target of a hack attack resulting in a loss of over $2 million.
Victim of a Price Manipulation Attack
PeckShield, a blockchain security company, announced that Zunami Protocol, a DeFi yield aggregator, was targeted by a price manipulation attack that resulted in a loss of over $2.1 million due to a security vulnerability. The security company stated in a recent announcement that a hack attack involving two significant transactions targeting the protocol was detected. PeckShield also added that the attackers attempted to obscure the trace of the stolen funds by transferring them to the crypto mixer Tornado Cash.
Following PeckShield’s warning, Zunami Protocol tweeted, “It seems that zStables has been attacked.” Zunami stated that the funds in the protocol are safe and that the team has started investigating the hack attack, urging users not to buy ETH and UZD at the moment.
In its warning tweet, PeckShield emphasized that the hack attack that shook the protocol was caused by price manipulation.
Zunami Protocol Was Warned about the Security Vulnerability
Xian Yu, the founder of SlowMist, another blockchain security company, made a noteworthy statement after the attack. Yu stated in a tweet that the company had identified the security vulnerability in the protocol two months ago and said, “The project fell victim to a price manipulation attack, resulting in a loss of over $2.1 million. The key point here is that our system detected this risk two months ago and specifically informed them before the attack.”
Yu added, “Unfortunately, no action was taken based on the communication established with the protocol. Looking back, it is clear that this attack could have been prevented.”
