Earlier today we, as Bitcoinsistemi.com, reported that the DeFi platform Linear Finance was attacked by a hack.
After the attack, the price of the cryptocurrency platform’s LUSD stablecoin fell to zero. However, the developers published a new statement about the latest situation.
According to the official statement from the Linear Finance team, the hacker managed to mine an unlimited amount of ℓAAVE, a synthetic asset that tracks the AAVE price, and then exchange it for LUSD on Linear Exchange. The hacker then sold the LUSD stablecoin on PancakeSwap and Ascendex, two decentralized exchanges that support it, removing all liquidity and causing the LUSD price to drop to zero.
Linear Finance announces precautionary measures regarding the attack
The team claims to have taken immediate measures to protect the protocol, its assets and its users. They announced that they were terminating all contracts that allowed tokens to be minted, burned, or traded, and that they had disabled the bridge contract for LUSD.
According to the statement, they have also deployed a leading team to track down the attacker and bring him to justice. They also shared the wallets involved in the attack with all major exchanges and authorities.
In their statement, the developer team argued that restarting the protocol and compensating users for the harm they suffered were their top priorities.
*This is not investment advice.