There are few things that define the DeFi market than its increased volatility and the many opportunities that it holds for various fintech companies to offer their best services. However, until recently the thing that has defined the DeFi space is the range of hacking scandals that have started to float around.
While hacking was a slight issue in the DeFi and crypto space, these hacking attempts have become more obvious over the past few months as the market faces some of the worst hacking attempts in the entire market. Over the last year alone, DeFi exchanges have lost a total of $3 Billion to different hacking attempts.
And the most recent company to fall victim to the recent flurry of attacks was a DeFi platform by the name of Team Finance. The hackers were able to manipulate their way into the system through an exploit.
While the team only found out about the exploit until the team of hackers was able to make away with $14 million. The hack came as a surprise to Team Finance they had to make quick changes to their system.
How did they get into the System?
Team Finance is a service that takes its security very seriously, which is why the hack came as a surprise. Through an exploit in the system, the hackers were able to come in and steal over $14 million from the company. The $14 million that they made away with was in a variety of crypto tokens, all of which they intend to sell back to the company.
The exploit itself only existed because the company was in the process of shifting to Uniswap version 3 from version 2. Therefore, they used this exploit to make their way into the company.
Going Into Damage Control
Following the hack, the company was quick to go into damage control, as they were trying to handle the situation. The first step was to suspend all transactions in and out of the service, which obviously took many of the clients by surprise.
However, the next step was to issue a statement where they would explain the event and why they have suspended operations. The reactions to this story had many people concerned, which is why they had to then send out a letter to the hackers for a bounty reward.
Trying to Find the Hackers
The first thing that has many investors concerned is the fact that most hackers remain untraceable after their heist. Therefore, finding the people responsible for the attack can become very difficult. All in all, the best that they can do is simply wait and hope that the group responds to their letter.