Fantom DeFi Project Loses $30M to a Security Breach
Fantom-based Grim Finance recently faced a security breach, losing 30 million dollars to a hacker. The unidentified hacker exploited a reentrancy bug in Grim Finance’s smart contracts. As soon as the news of the attack came out, the network’s TVL dipped to 4.2 million dollars from 98.9 million dollars.
In addition, Grim Finance’s native token GRIM fell by 70%. The breach occurred during the weekend when an unidentified attacker picked 30 million dollars from Grim Finance’s yield vault. The Grim team released the news about the attack on Sunday in a tweet, revealing the losses and stating the network has identified the attacker’s address.
Grim Finance is among the most well-known DeFi projects on Fantom, which works like the Ethereum-backed Yearn.Finance. The platform allows users to deposit cryptocurrency assets like FTM to vaults. It uses sophisticated multi-step strategies throughout the industry to release lucrative yields for users.
This is not the first time the DeFi industry has lost millions to a reentrancy bug. A similar breach occurred in Cream Finance’s smart contracts, where the network lost 17.6 million dollars. Surprisingly, the attacker returned most of the funds to Cream Finance.
However, no similar news has been announced regarding the Grim Finance team. The network has ever since paused its vaults and informed Maker, AnySwap, and Circle to possibly free more transfers.
A new report by DeFiLlama states that Grim Finance has lost over 94 million dollars in Total Value Locked. The platform’s TVL went from 98.9 million dollars to 4.2 million dollars within 72 hours. Similarly, its native token lost 70% market value, reaching the price of 0.23 dollars.