Cryptocurrency derivatives company Deus Finance has lost more than $3 million in digital assets following a hack, causing the native tokens to plunge 40%.
The attackers used the flash loans to trick the smart contracts that manage the price of DEI that the token had collapsed. This caused the loss of funds from the liquidity providers in the DEI/USDC pool.
The exploiters exchanged the loot for 200,000 DAI and 1,101.8 ETH through the decentralized exchange Multichain. The assets were redeemed through the privacy swap tool Tornado rendering it impossible to trace the stolen assets.
Security firm PeckShield confirms that the bad actors altered the price of the firm’s offering using uncollateralized smart contract loans.
Deus Finance enables creators to develop and issue financial instruments like options and derivatives on the platform.
The incident follows another hack on the Fantom-based Fantasm Finance which cost the firm $2.5 million in a similar exploit.