Decentralized crypto lending protocol Silo Finance confirmed a hacker exploit resulting in losses of approximately $545,000.
Hacker Attack on Silo Finance Smart Contract
Silo Finance reported that hackers exploited a vulnerability in their smart contract, leading to an estimated loss of $545,000. According to security research firm PeckShield, the issue was related to user-controlled input in the contract's openLeveragePosition function.
Recovery Actions by the Silo Finance Team
The Silo Finance team assured users that the core smart contracts, including markets and vaults, were not affected. They clarified that the exploited contract was only used for testing a new leverage feature. Following the incident, the affected contract was paused.
Related Incidents and Consequences
Following the exploit, the price of the SILO token dropped to approximately $0.04035, an 11% decline in the last 24 hours. Related blockchain investigations uncovered activity indicating the use of Tornado Cash, a crypto mixing service.
Silo Finance continues to update users on the incident's aftermath, emphasizing the safety of their core contracts and the commencement of recovery actions.
