DeFi project on the Avalanche blockchain hacked for $3.2 million

The decentralized finance (DeFi) protocol Zabu Finance on the Avalanche blockchain announced a hack. The attacker siphoned off crypto assets worth about $3.2 million.

The project’s native token ZABU collapsed to zero after the incident.

Upon detecting the attack, Zabu Finance’s team sought help from the decentralized exchanges Pangolin and Trader Joe in the Avalanche ecosystem.

Zabu Team Wallet has not sold a single Zabu. We’re under an exploit, possibly from Spore Pool. We’re investigating the exploit. Need help @pangolindex @traderjoe_xyz @avalancheavax pic.twitter.com/lKysK87InM

— Zabu Finance 🔺 (@zabufinance) September 11, 2021

\”The team wallet has not sold a single ZABU. We’re under an attack, possibly from Spore Pool. We’re investigating the exploit. Help from Pangolin, Trader Joe, and Avalanche is needed,\” the developers said.

Investigation showed that the attacker exploited a vulnerability in a smart contract and successfully withdrew 4.5 billion ZABU, which they sold on Pangolin and Trader Joe, obtaining about $600,000.

Immediately after the hack, the project team urged investors to withdraw assets promptly to avoid losses.

The protocol also burned 93.12 million ZABU remaining in the team and treasury wallets.

In late August attack on the DeFi protocol Cream Finance. The loss exceeded $18 million at the time.

A few days later, the hacker returned most of the withdrawn funds totaling $17.6 million.

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