On the 28th of December, a suspected hacker penetrated the decentralized finance (DeFi) insurance project Cover Protocol. As a result, the COVER token dropped by over $97%.
Shortly after the hack, a hacker Grap.finance claimed responsibility for the attack and said all stolen funds had been returned. In a tweet, the suspected hacker said:
“Next time, take care of your own shit. 1. No gains. 2. The Obtained Funds from LP has been returned to COVER.”
Cointelegraph stated in a report that the hacker liquidated more than 11,700 coins on the 1INCH DEX aggregator, emptying over $5 million from Cover Protocol.
Cover Protocol released a statement to address the hack:
“The Blacksmith farming contract has been exploited to mint infinite $COVER tokens. We have restricted minting access to the farming contract in order to stop the attacker. If you are providing liquidity for $COVER token (uniswap or sushiswap) please remove it immediately.”
Regardless of all the increase the crypto space saw in 2020, there was also a high number of attacks in several projects.
According to Cover Protocol, an investigation is ongoing regarding the matter.
