A yield finance protocol Pickle Finance was hacked today for a significant amount. Pickle finance representatives advised its users to withdraw their DAI balance from Pickle, until the situation gets resolved.
Pickle of a situation
Nearly $20,000,000 DAI was stolen from a wallet belonging to Pickle Finance by a hacker. The hacker utilized so-called “Evil Jars” hacking exploit.
The new hacking exploit doesn’t appear as the same technique of “Flash loan” used in attacks on other DeFi projects in the past.
Previously Flash Loan Oracle Attack exploit was used on projects to steal dozens of millions USD. Harvest Finance, Akropolis, Cheese Bank and many other DeFi projects fell victim to “Flash loan” attack.
Audited for security
One of the key marketing features for Pickle finance is not only a practical ability to invest your money in the best yield projects automatically, but it’s security.
The Pickle’s smart contracts were audited by MixBytes and HAECHI AUDIT, signifying that the protocol is secure for use and resistant to hacking attacks.
Update: The Auditor companies claim they haven’t audited the new version of the contract, which was supposedly updated by the Pickle Finance developers
The Pickle Finance community chat group went on fire while people started worrying about their finance and accusing Pickle of a Scam “Rug Pull”.
As the market reaction, the Price of Pickle Finance token crashed 55% in a few hours. The holders of the token are selling in panic, while some traders that expect it to bounce back don’t rush to buy.
Big twitter influencers have reacted with calls to run away from Pickle finance and withdraw all the funds from this project
The continuing flame and panic in Pickle Finance telegram group signifies that people are still confused with this situation and worry about safety of their funds.
The representatives of Pickle assure it wasn’t a scam, and they fell victim to a hacker attack.
Numerous people who held their funds in DAI pickle finance jar have lost their funds. They might get a compensation from Pickle based on some voting conducted in Pickle community as it’s a frequent protocol that other projects that fallen to this attack usually follow.
The officials of Pickle Finance didn’t specify their strategy for further actions on refunds for the affected holders
To continue watching the development of situation, follow @picklefinance
on Twitter and check their telegram chat https://t.me/picklefinance
Final update: Pickle Finance decided not to compensate those who lost funds in the “hacking attack”
Hacking attacks for such significant amounts may affect the dynamics of Altcoin Price Market
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