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Tender Finance, a DeFi lending and borrowing platform ceased all borrowing moments ago due to an “unusual amount of borrows,” suggesting a possible hack into the protocol. Tenderfi reportedly lost control of about $1.58 million from the exploit from an alleged white hat hacker.
Abnormal amount of borrowing detected at Tenderfi
Tenderfi has communicated to its users through Twitter about a possible hacking attack that occurred moments ago. In the tweet, the DeFi lender protocol explained that they observed an unusual amount of borrowings prompting them to pause borrowing.
We are investigating an unusual amount of borrows that came through the protocol- in the meantime, we have paused all borrowing. Thank you for your patience.
— Tender.fi (@tender_fi) March 7, 2023
According to CertiK, a hacker with the wallet address EOA,0x896D gained $1.58 million from the exploit.
#CertiKSkynetAlert 🚨
— CertiK Alert (@CertiKAlert) March 7, 2023
We are seeing an exploit on @tender_fi in which EOA 0x896D gained $1.58m @tender_fi have announced that they have paused borrowing and cited unusual borrows that came through the protocol
See more below 👇https://t.co/KHZ9J9Pj65 pic.twitter.com/cDV51MRgh6
After investigations and efforts to contact the user, Tenderfi finally uncovered that it was a white hat hacker. The white hat contacted the lender over Debank. Meanwhile, the company has vowed to “remedy the situation” and give more information as soon as possible.
The whitehat has made contact over debank and we are currently in discussions on how to remedy this situation. We will update you with more information when we have it.
— Tender.fi (@tender_fi) March 7, 2023
White hat hackers are ethical hackers who establish loopholes or vulnerabilities within the system. In this occurrence, the lender has some huge vulnerabilities that must be addressed immediately.
Tenderfi token declines on the daily range
The Tender Finance token (TND) decline has been notable today, per Coingecko. Before briefly returning, the token declined from a 24-hour high of $3.77 to a seven-day low of $2.22.
DeFi protocols greatly rely on users’ trust, and thus Tender.fi (TND) users might be at crossroads after today’s exposure. But since the company claimed the hack was ethical, there is no need for alarm.
Users on Twitter, such as @carlossolra_c, had begun expressing their frustrations on DeFi, citing that the situation was a “red flag.” However, the company is inevitably taking positive strides toward shielding its protocol from such attacks in the future.
Another red flag for https://t.co/gJESkZhOKo
— Carlos (@carlossolra_c) March 7, 2023
The white hat hacks may prove helpful in countering DeFi hacks, which have become so troublesome to the growth and mass adoption of crypto and decentralized finance.