Earlier today, we, as Bitcoinsistemi.com, reported that the DeFi platform Linear Finance was under a hack attack.
After the attack, the price of the LUSD stablecoin belonging to the cryptocurrency platform dropped to zero. However, the developers published a new statement about the latest situation.
According to the official statement from the Linear Finance team, the hacker managed to mint an unlimited amount of ℓAAVE, a synthetic asset that tracks the AAVE price, and then exchanged it for LUSD on Linear Exchange. The hacker then sold the LUSD stablecoin on PancakeSwap and Ascendex, two decentralized exchanges that support it, draining all liquidity and causing the LUSD price to drop to zero.
Linear Finance Announces Precautions Regarding the Attack
The team claims to have taken immediate measures to protect the protocol, its assets, and its users. They announced that they were discontinuing all contracts that allowed tokens to be minted, burned or traded, and disabled the bridge contract for LUSD.
They also deployed an industry-leading team to track down the attacker and bring him to justice, according to the statement. They also shared the wallets involved in the attack with all major exchanges and authorities.
In their statement, the developer team argued that restarting the protocol and compensating users for the damage they suffered were their top priorities.
*This is not investment advice.
