An ethical hacker has recently exploited the Tender.fi lending platform, which operates on the decentralized finance (DeFi) network.
In an unexpected turn of events, the hacker chose to return the stolen amount of $1.59 million to the platform in exchange for a reward or bounty.
Tender.fi confirmed on Twitter that the white hat hacker had returned the funds and was awarded 62.16 ETH, worth around $97,000, which is equivalent to 6% of the exploit amount.
DeFi platforms like Tender.fi allow users to borrow and lend cryptocurrency assets without the need for intermediaries like banks or brokers.
However, the complex nature of these platforms often leads to vulnerabilities that hackers can exploit. In the case of Tender.fi, the security analyst noted an unusual amount of borrows, following which the platform ceased all lending operations.
It was later revealed that a hacker had borrowed $1.59 million worth of assets from the protocol by depositing 1 GMX token, valued at $71 at the time of writing.
DeFi hacks have become more common in recent times, raising concerns about users’ funds’ safety and security. Decentralized Finance or DeFi is a blockchain-based financial system that provides an alternative to traditional finance.
While DeFi offers increased accessibility, transparency, and autonomy, it is vulnerable to hacks and exploits. Malicious actors can exploit vulnerabilities in smart contracts, decentralized applications, and other DeFi protocols to steal funds from users.
According to the DeFi data analytics platform DefiLlama, the total value of DeFi hacks has amounted to more than $5 billion.
The recent exploit on Tender.fi is a reminder of the importance of maintaining security protocols on DeFi platforms to prevent such occurrences.
It is heartening to see ethical hackers working to strengthen the network by reporting vulnerabilities and returning stolen funds. As the DeFi network continues to grow, it is crucial to prioritize security and maintain trust in the system.