Recently, AnubisDAO, the dog-inspired DeFi project suffered a major setback when approximately $60 million worth of Ether was stolen from it.
The hackers used Tornado Cash, a tool that allows for untraceable transactions, to siphon off the stolen funds.
Back in October 2021, AbubisDAO managed to collect 13,556 ETH from investors who were drawn to the project due to the popularity of Dogecoin.
Unfortunately, within just 20 hours of the investment, the funds were secretly transferred to another address, resulting in significant and immediate losses for the investors.
Fast forward almost two years to July 15 and 16, the stolen funds were skillfully maneuvered using Tornado Cash, an autonomous protocol that enables confidential transactions.
The person or group in control of the 13,556 ETH decided to split and relocate the funds through a series of 100 ETH transactions, as evidenced by the provided screenshot.
PeckShield, a blockchain investigator, sounded the alarm when an exploit occurred, resulting in the theft of 13,556 ETH, which was valued at around $60 million at the time. Currently, the stolen funds amount to approximately $26.2 million.
Although some of the defrauded investors hold onto a glimmer of hope for recovering their funds once the bear market recovers, the chances of that happening are highly unlikely. Therefore, it is strongly advised that investors conduct thorough research on a project and its founders before making any investment.
The losses incurred from the Multichain exploit have forced Geist Finance, a leading protocol, to permanently half its operations. In a recent update, the team confirmed their decision not to resume lending and borrowing activities on Geist.
A technical complication associated with this exploit makes it “impossible” for Geist Finance to reintroduce lending, as it would result in significant debt for holders of non-Multichain coins like Magic Internet Money (MIM) of Fantom.
Also read: CEO’s Arrest Forces Multichain to Shuts Down Operations
