DeFi

Investors Lost $ 15 Million In New DeFi Project From Yearn.Finance Founder

The founder of the popular project DeFi Yearn.Finance, André Cronier, launched the Eminence game protocol on September 28, but a critical vulnerability was discovered in it and investors lost $ 15 million.

The boom of “profitable farming” leads to the fact that in the pursuit of huge profits, investors are ready to invest in any project that has not even passed the audit. Moreover, if the founder of a well-established project is behind the development. This is what happened with the Eminence game protocol by Andre Cronje. 

He posted the Eminence.finance logo on Twitter, and went to bed. As Cronje later said , he completed the development of the concept and published the preparatory contracts on the Ethereum network, although there were still about three weeks before the project was fully launched. 

Users discovered these far from final contracts and began to transfer funds. It turned out that the project has a very simple vulnerability that allowed attackers to quickly withdraw all the money. Interestingly, the hackers transferred $ 8 million back to Cronje’s address:

“At three in the morning I woke up from the messages and it turned out that almost $ 15 million was transferred to the address of the contract, the contracts were hacked and all $ 15 million were withdrawn, but $ 8 million was sent to my address of the yearn developer”.

At its peak, the EMN token reached a price of $ 130,548, but after the hack, its rate dropped to $ 368. Cronier promised that he would transfer at least partial compensation to users.

Recall that recently a fake FLM token of the Flamingo project appeared on the Uniswap decentralized exchange . Its price on the second day of trading reached $ 257, while the real token costs about $ 1.

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Experienced Founder with a demonstrated history of working in the newspapers industry. Skilled in Data Research, Management, Investment Research, Teamwork, and Leadership. Influencing the technology, people, and technical analysis of the Cryptocurrency and Blockchain world.
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