The UwU Lend DeFi protocol is offering a hefty $5 million bounty to anyone who can identify the attacker behind a series of exploits that drained over $24 million from its coffers. This drastic measure comes after the hacker ignored a previous offer to keep 20% of the stolen funds in exchange for returning the remaining 80%.
The saga began on June 10th when a price manipulation attack saw a staggering $20.3 million vanish from UwU’s lending pools. In a surprising move, the UwU team opted for negotiation, publicly requesting the attacker return 80% of the stolen funds with the promise of amnesty.
This attempt went unanswered, and the plot thickened on June 13th when the same hacker address (0x841…21f47) struck again, siphoning an additional $3.7 million from UwU’s liquidity pools for various cryptocurrencies.
Related : UwU Lend Hacked Twice In A Week: DeFi Protocol Loses $23M In Double Exploit
Undeterred, the UwU team upped the ante with a hefty $5 million bounty, payable in Ethereum (ETH), to anyone who can identify the culprit. This unprecedented reward is significant, considering it dwarfs the potential recovered funds and signifies UwU’s determination to bring the attacker to justice.
Blockchain security firm Cyvers confirmed that both attacks originated from the same wallet address, suggesting a single individual or group is behind the exploits. While UwU has already begun reimbursing victims of the first attack, with over $9.7 million returned, the incident has undoubtedly shaken investor confidence. However, the UwU token itself has shown surprising resilience, only dropping 20% in the past week and maintaining a market cap of over $22.6 billion according to CoinGecko.
This incident highlights the ever-present vulnerability of DeFi protocols to cyberattacks. With nearly $19 billion stolen from the cryptocurrency industry since its inception, robust security measures are crucial for building trust and ensuring the long-term viability of the DeFi space.
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