2M USD is stolen from Hope Finance users’ funds

Users of Arbitrum-based decentralized finance (DeFi) project have become the subject of a 2 million USD exploit, leaving some with nothing in their accounts.

Hope Finance Twitter account had notified users of the scam on February 21st, after which, CertiK, a web3 security firm, had picked up on the incident and marked it in their Twitter account.

The vulnerabilities included the possibility of reentrancy attacks and an incorrect modifier. Nonetheless, the smart contract had passed the audit successfully.

Shortly after the scam, Hope Finance shared the information on how to withdraw staged liquidity form the protocol by an emergency withdrawal function with their users

Arbitrum as well as Optimism are the 2 layer roll-up Ethereum networks, enabling exponential scaling of smart contracts. These two, layer-2 protocols, continue to handle the ever increasing amount of transactions inside the Ethereum ecosystem.