The lending and liquidity protocol UwU Lend has fallen victim to a cyber attack resulting in an estimated loss of $19.3 million.
The information, confirmed by several blockchain security firms including Cyvers and Arkham, highlights the persistent risks in the DeFi protocol space.
$19.3 million in Flash Loan: Details of UwU Lend Hack
On-chain data reveals that a wallet successfully diverted numerous tokens using Flash Loans, including wrapped ethereum (WETH), wrapped bitcoin (WBTC), and stablecoins. In three transactions, the attacker managed to abscond with $19.3 million worth of assets from the protocol.
The hacker subsequently exchanged the majority of these assets on Uniswap. The exact method used for the hack is not yet clear. UwU Lend announced that an investigation is underway to determine the cause of this security breach and that reimbursements will be offered to affected users.
Controversial Background of the Founder
UwU Lend was created by Michael Patryn, also known as ‘Sifu,’ cofounder of Quadriga CX.
This platform filed for bankruptcy, adding another layer of controversy around Sifu, especially after transferring $5.5 million in ETH to the now-sanctioned token mixer, Tornado Cash, in 2022 while acting as the treasurer for the Wonderland DAO.
