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Sonne Finance, BlockTower Capital hit by cyber attacks
Sonne Finance, a decentralized liquidity market protocol operating on Optimism and Base, has been hit by a significant cyberattack.
Blockchain safety The Cyvers firm detected the attack on May 15 in the early hours of the morning in Asia.
Sonne Finance Optimism Market was suspended following the incident
Cyvers initially reported that $3 million had been stolen from Sonne’s USD Coin (USDC) and Wrapped Ethereum (WETH) contracts on his Optimism chain. However, the situation quickly worsened. Within 30 minutes, Cyvers updated the loss estimate to $20 million.
“Sonne Finance, please act immediately,” Cyvers warned.
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Leveraged Sonne Finance contracts. Source: X/CyversAlert
About an hour after the alert, Sonne Finance addressed the incident on X (Twitter). The team also promised to provide more information later.
“All markets on optimism have been put on hold. The markets on Base are safe,” we read declared.
Following the incident, BeInCrypto found out the scammers were attempting to exploit the situation. A fake X account, imitating Sonne Finance, urged users to revoke all approvals to avoid losses.
He shared a suspicious link to “check exploit exposure” and revoke approvals. However, the tweet was later deleted.
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BlockTower Capital, a cryptocurrency investment firm, also suffered a cyberattack in a separate incident. Bloomberg cited Undisclosed sources say scammers have partially dried up BlockTower Capital’s main hedge fund. The funds are still missing and the hacker remains at large.
Furthermore, the source said that the company has hired blockchain forensic analysts to track down the stolen money. They also recently updated their limited partners on the robbery. At the moment BlockTower Capital has not released any official statements on the incident.
Indeed, hacking incidents continue to roil the cryptocurrency industry. BeInCrypto had previously reported a reduction in the frequency of hacking incidents by more than 65% starting from April 2024.
However, the loss amounts remain significant. According to SlowMist’s weekly security report, from April 28 to May 4, 2024, total losses from cryptocurrency-related security incidents reached $71.39 million.
This attack on Sonne Finance highlights the Vulnerabilities in Decentralized Finance (DeFi) sector. It also shows the need for strong security measures to protect digital assets.
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