• A Polygon-based DeFi protocol called 0vix was exploited for $2 million.
• The attacker moved the stolen USDC to Ethereum mainnet and swapped it for 757 ETH.
• 0vix has paused its markets on POS and zkEVM in response to the incident.
Polygon-Based Protocol 0vix Exploited for $2M
A Polygon-based decentralized finance (DeFi) protocol, 0vix, appears to have been exploited for $2 million via flashloan. Blockchain security firm CertiK reported the incident — which Arkham Intelligence further corroborated. According to Arkham, the exploiter inflated the price of vGHST to borrow a large amount of USD. The attacker then moved the USDC to Ethereum (ETH) mainnet and swapped it for 757 ETH.
0vix Responds with Market Pause
0vix has yet to respond to CryptoSlate’s request for comment as of press time. However, the lending protocol confirmed the incident in an April 28 statement, adding that it was “working with its security partners to look into the current situation that seems to be related to vGHST.“ Due to the incident, 0vix has paused the markets on POS and zkEVM. It further noted that this action would affect oToken transfers, minting and liquidation.
SEC Action Motivated by Gensler’s Views
Coinbase suggested that SEC action is motivated by Gary Gensler’s own views, while Gensler analogizes crypto vs securities comparison calling a dog a goldfish; sparking community backlash in return. Furthermore, a vigilante hacker burned hundreds of BTC held in wallets used by Russian intelligence agencies too and Glassnode reports that US government holds $6B worth of Bitcoin as well.
The news of 0vix being exploited has sparked many reactions from within and outside of cryptocurrency space from both experts and casual users alike who are concerned about such incidents taking place in DeFi protocols like Uniswap or SushiSwap among others due to their decentralized nature allowing malicious actors more freedom in exploiting them than centralized exchanges provide..
It remains unclear if hacker activity against DeFi protocols will increase in frequency or severity going forward; however one thing is certain – proper security measures must be taken when dealing with cryptocurrencies if users wish their funds remain safe from attackers looking exploit vulnerabilities within these systems for personal gain at other people’s expense.