AnubisDAO DeFi Project Suffers $60 Million Ether Theft

AnubisDAO DeFi Project Suffers $60 Million Ether Theft, Raises Concerns in the Crypto Community

Defi news, News

In a significant blow to the dog-inspired decentralized finance (DeFi) project, AnubisDAO, approximately $60 million worth of Ether was recently stolen. The incident has raised concerns about security and investor protection within the crypto space.

AnubisDAO’s Setback and the Exploitation of Tornado Cash

AnubisDAO, known for its association with Dogecoin and drawing the interest of investors, managed to amass 13,556 ETH back in October 2021. However, within a mere 20 hours of the investment, the funds were stealthily transferred to another address, resulting in substantial and immediate losses for the investors.

The theft of funds from AnubisDAO involved the utilization of Tornado Cash, a tool that enables untraceable transactions. The hackers skillfully maneuvered the stolen funds through a series of 100 ETH transactions, making it difficult to trace the flow of funds.

PeckShield’s Alert and the Current Status of the Stolen Funds

Blockchain investigator PeckShield was quick to sound the alarm when the exploit occurred, leading to the theft of 13,556 ETH valued at around $60 million at the time. Presently, the stolen funds amount to approximately $26.2 million. PeckShield’s investigation revealed that the stolen AnubisDAO funds were being washed through Tornado Cash, adding another layer of complexity to the incident.

It seems the rugged @AnubisDAO funds are being washed via @TornadoCash

— PeckShieldAlert (@PeckShieldAlert) July 16, 2023

Despite the hopes of some defrauded investors for the recovery of their funds once the bear market recovers, the chances of that happening are slim. This unfortunate event serves as a reminder to investors to conduct thorough research on projects and their founders before making any investment.

Geist Finance’s Decision to Permanently Halt Operations

The losses resulting from the Multichain exploit have had far-reaching consequences. Geist Finance, a prominent protocol, has been forced to permanently scale back its operations. The team recently confirmed their decision not to resume lending and borrowing activities on Geist.

1/2 After confirmation from Multichain that the funds will not be recovered, we are announcing that Geist will not reopen. Because Chainlink oracles are tracking the value of real USDC, USDT, WBTC or ETH, they are not aware of the real value of Multichain assets.

— Geist Finance (@GeistFinance) July 14, 2023

The technical complications associated with the exploit make it “impossible” for Geist Finance to reintroduce lending, as it would burden holders of non-Multichain coins, such as Magic Internet Money (MIM) of Fantom, with significant debt.

Enhancing Security and Investor Protection in the Crypto Community

The AnubisDAO theft and the subsequent fallout highlight the pressing need for increased security measures and investor protection within the crypto industry. Incidents like these underscore the risks involved in DeFi investments and emphasize the importance of due diligence on the part of investors.

It is crucial for individuals to thoroughly research projects, evaluate the transparency of protocols, and assess the security measures in place before engaging in any investment activities. As the crypto space continues to evolve, regulatory frameworks and industry best practices must be established to safeguard investors and build trust within the ecosystem.

In conclusion, the theft of $60 million worth of Ether from AnubisDAO serves as a stark reminder of the security vulnerabilities present in the DeFi space. The incident emphasizes the need for heightened vigilance, increased security measures, and comprehensive investor education to protect against such malicious activities. As the crypto community learns from these events, it is expected that industry-wide efforts will be made to enhance security standards and mitigate the risks associated with decentralized finance.

blockchain, ETH, hack, Stable Coin, TornadoCash, USDC, USDT