Bitcoin-based DeFi platform Solv Protocol was hit by a hacking attack and had bitcoin-linked tokens (SolvBTC) worth $2.7 million stolen, Cointelegraph reported on Thursday (local time).
Solv Protocol offered the hacker a 10 percent bounty and asked for the stolen funds to be returned. The project said fewer than 10 users were affected and promised compensation for the lost 38.05 SolvBTC.
The hacker exploited a vulnerability in Solv Protocol’s smart contract to mint millions of tokens and then siphoned funds by swapping them for SolvBTC. Security experts assessed the attack as an exploitation of a smart contract reentrancy vulnerability. Solv Protocol is strengthening security measures to prevent additional attacks and is investigating the incident in cooperation with security firms Hypernative Lab, SlowMist and Certik.
Solv Protocol supports users by converting deposited bitcoin into SolvBTC, allowing it to be used for lending, borrowing and staking on other blockchains.
Chi-gyu Hwang (황치규)
delight@d-today.co.kr