Arbitrum Suffers Largest Exit Scam as it Ends Up losing $2 Million

Arbitrum Suffers

An alarming update was shared by the teams at Hope Finance pertaining to the protocol exploit.

As per the reports, Hope Finance, a decentralized finance (DeFi) protocol suffered a major exploit. According to claims, it is the largest exploit that the protocol has suffered so far.

$2 Million Exploit

The officials at Hope Finance revealed that they suffered from an exploit, which ended up resulting in a $2 million loss. They confirmed that the exploit was successfully attempted by the exploiters on February 20.

As communicated through the Twitter account of Hope Finance, the hacker was able to carry out a massive exploit. This is because the attacker managed to steal all of the funds that were present in the protocol genesis.

Hope Finance is a protocol that is based on the Arbitrum protocol. The investigation teams have been able to gather some useful information about the attacker.

They have released the person’s information who might be behind the exploit and may have stolen the funds directly from the protocol.

The protocol has also managed to acquire the photograph of the person from the voter’s card.

Information of the Hacker

While sharing the information, the Hope Finance officials have claimed that the name of the hacker is Ugwoke Pascal Chukwuebuka, a person living in Nigeria.

The investigation teams have claimed that he was the one responsible for exploiting the protocol. Right after the protocol went live on February 20, the hacker exploited the protocol and moved the funds to a crypto mixer.

The data shows that the hacker moved the funds into Tornado Cash, a cryptocurrency mixer, to hide the traces of the funds movement.

It is yet to be established whether the Nigerian national in question was involved in the development of the protocol or not.

The investigators are very concerned about the actual identity of the person and they have to come up with an explanation on the exploit as soon as possible.

It is a major concern that the protocol was exploited the same day it was launched. The community members are very concerned about the exploit and they are demanding for answers.

Information about Exploited Funds

Being a blockchain security firm, Peckshield was the first firm to share information about the exploit. It revealed that the hacker was able to exploit 1,095 ETH from the protocol.

The total value of the stolen ETH tokens stands at $1.86 million at the time of writing.

Cognitos was the firm that carried out the audit for the smart contract of Hope Finance. In the audit report, Cognitos revealed that the protocol had vulnerabilities but they were minor, still raising the red flag.

Despite the red flags, Hope Finance did not address the matter and it ended up getting hacked and exploited.