Poolz Finance suffers hack and loses about $390,000 in Binance Smart Chain and Polygon, reported blockchain security company PeckShield. The security company detected the attack on Wednesday and suspects it was due to an arithmetic overflow issue. PeckShield also identified a repeated pattern by the same sender in the Poolz Finance token vesting contract.
In computing, arithmetic overflow refers to increased operational performance in the face of the relatively smaller storage system. Although arithmetic operations in Solidity conform to overflow, programmers generally assume that "an overflow generates an error," which can easily result in bugs. Blockchain watchdog Bythos was the first to identify and tweet about the problem to PeckShield.
Poolz Finance is a decentralized cross-chain IDO platform that allows crypto projects to receive funding before going public. However, its POOLZ token took a more than 95% hit in the last day alone and its current price of $0.19 is more than 99% lower than its all-time high. In April 2021, POOLZ reached a peak price of $50.89.
The hack is a reminder that risks in the crypto space are real and ever-present. The crypto community must work together to strengthen the security of their platforms and prevent future attacks, as the Euler Finance hack also recently took place.
Euler Finance hack reveals vulnerabilities at DeFi
The world of decentralized finance (DeFi) suffered another blow when the Euler Finance protocol was hacked on March 13. According to reports from BeInCrypto, hackers stole more than $195 million in a quick-lending attack. The protocol then sent a chain message to the hacker, threatening a $1 million reward for information leading to his arrest and return of the funds.
This is not an isolated case, as DeFi protocols continue to be a target for hackers. In February, Platypus lost more than $8.5 million in a fast lending attack, and according to a report by Chainalysis, $3.8 billion in cryptocurrencies were lost in 2022, with the majority of these funds coming from DeFi protocols.