Poolz Finance, a cross-chain decentralized initial DEX offering (IDO) platform, suffered a cyberattack on both the Binance Smart Chain and Polygon networks, resulting in a loss of approximately $390,000.
The hack was discovered by blockchain security company PeckShield, which suspects that an arithmetic overflow issue might have caused the breach.
An arithmetic overflow issue is a problem of a larger operation yielding a result that exceeds the relatively smaller storage system’s capacity.
PeckShield also noted that the same sender on the Token Vesting contract had a repeat pattern, leading to suspicions of foul play.
Poolz Finance’s POOLZ token has been hit hard, with its value plummeting by over 95% in just a day. Its current price of $0.19 is more than 99% lower than its all-time high of $50.89, which it reached in April 2021.
This incident comes just days after the DeFi protocol Euler Finance suffered an exploit that resulted in the theft of over $195 million.
Euler Finance issued a message to the hackers, stating that if 90% of the funds were not returned within 24 hours, a $1 million reward would be offered for information leading to their arrest and the return of all funds.
The hackers reportedly transferred the stolen funds to two new accounts heavily loaded with DAI stablecoins and Ethereum.
These incidents underscore the need for heightened cybersecurity measures in the DeFi space and the importance of implementing secure coding practices to prevent arithmetic overflow and other types of security vulnerabilities.
