Sonne Finance suffers $20 million loss in security breach

Sonne Finance became the victim of a safety infraction which left the business with a loss amounting to the tune of $20 million. The hackers completed their misdeeds in two phases. They first targeted the USDC and WETH contracts of the company, siphoning off $3 million and in the following phase, they took away the amount to the tune of $17 million. Concerned investigators are presently involved in identifying and catching up with the culprits.

Currently, every market on Optimism is strictly on hold, whereas the markets on Base are secure. 

With regards to Fiat’s USD stabilized Optimism coin, there is every probability of it creating a loss of 74% pertaining to users, in the scenario that they hesitate to distance themselves from the market. Sonne Finance has been instrumental in blocking the functions on Optimism for addressing the situation in hand. 

In spite of the fact that the matter is being closely looked into, certain observers are of the opinion that, in all probability, the incident was somehow linked to the lending space that has been set up lately. The first coin’s conventional token, Sonne, witnessed a drop of 15% following the fiasco, bringing the platform’s market capitalization down to $4.25 million. 

The occurrence signifies the fact that the DeFi arena still comes with plenty of hurdles and loopholes. The introduction of DeFi has brought in added users for utilizing the technology. Considering this aspect, it only becomes more imperative that strong safety features are available to users for safeguarding their interests in the future.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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