Hackers Exploit DeFi Project Cover Protocol, COVER Token Price Tanks 90%
Dec 29 2020 · 15:00 UTC by Bhushan Akolkar · 2 min read
Photo: Shutterstock
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In one of the biggest attacks in the DeFi space, hackers exploited the DeFi project Cover Protocol by liquidating nearly 12K COVER coins and injecting an additional supply of 40 quintillion Cover “coins”.
DeFi project COVER staking protocol has recently been the victim of a suspected attack while artificially inflating the COVER token supply. The hackers have reported exploited the Cover protocol with millions of stolen cover tokens amounting to a massive $2 trillion.
Allegedly, the hackers infused an additional supply of over 40 quintillion Cover “coins”. This resulted in the COVER coin price crashing nearly 90%. On Monday, December 28, the COVER token price crashed all the way from $735 to $53, as per the data on CoinGecko.
Cover Protocol Sheds 97% After Suffering Minting Attack
Last Updated: 29 December 2020
Decentralized Finance (DeFi) insurer Covered Protocol suffered a minting attack earlier on Monday, which saw its price dropping by 97% shortly after the attack.
However, a few hours after the infinite printing scheme hack, a “white hacker” known as GrapFinance revealed on Twitter that it was responsible for the hack and that all funds have been returned.
The white hacker initially withdrew more than $4 million, which include 90 WBTC, one million DAI, and about 1,400 ether.
Barely 24 hours after the incident, the price of COVER slumped by 95% to $50 per token. However, the price is gradually picking up. COVER’s price was around $859 before the hacking incident. The price has rebounded to $240 after the white hacker claimed responsibility and returned the funds.