tl;dr
Sonne Finance, a decentralized liquidity market protocol operating on Optimism and Base, was hit by a significant cyber attack. The attack, detected by blockchain security firm Cyvers on May 15, resulted in the theft of $20 million from Sonne's USD Coin and Wrapped Ethereum contracts on its Optimism...
Sonne Finance Cyber Attack Sonne Finance, a decentralized liquidity market protocol operating on Optimism and Base, was hit by a significant cyber attack. Blockchain security firm Cyvers detected the attack on May 15, resulting in the theft of $20 million from Sonne's USD Coin and Wrapped Ethereum contracts on its Optimism chain. Following the incident, all markets on Optimism were paused, while markets on Base remained safe. Scammers attempted to exploit the situation, with a fake Sonne Finance account urging users to revoke approvals through a suspicious link. In a separate development, BlockTower Capital, a crypto investment firm, also experienced a cyber attack, resulting in the partial draining of its main hedge fund. The hacker remains at large, and the firm has not made an official statement about the incident. These incidents underscore the vulnerabilities in the decentralized finance sector and the importance of strong security measures to protect digital assets.
Sonne Finance's Contracts Exploited. Source: X/CyversAlert
Sonne Finance's Optimism Market Suspended Following the Incident: Initially, Cyvers reported that $3 million had been stolen from Sonne’s USD Coin (USDC) and Wrapped Ethereum (WETH) contracts on its Optimism chain. However, the situation quickly worsened. Within 30 minutes, Cyvers updated the loss estimate to $20 million. “Sonne Finance, please take immediate action,” Cyvers warned.
A Fake Sonne Finance Account Shared a Suspicious Link. Source: X/SonneFinance: About one hour after the warning, Sonne Finance addressed the incident on X (Twitter). The team also promised to provide more information later. “All markets on Optimism have been paused. Markets on Base are safe,” it stated. BeInCrypto discovered that scammers were attempting to exploit the situation. A fake X account, mimicking Sonne Finance, urged users to revoke all approvals to prevent loss. It shared a suspicious link to “check exposure to the exploit” and revoke approvals. However, the tweet was later deleted.
BlockTower Capital Cyber Attack: BlockTower Capital, a crypto investment firm, also experienced a cyber attack in a separate development. Bloomberg cited undisclosed sources saying fraudsters partially drained BlockTower Capital’s main hedge fund. The funds are still missing, and the hacker remains at large. Furthermore, the source said the firm hired blockchain forensics analysts to track the stolen money. They also recently updated their limited partners about the heist. As of now, BlockTower Capital has not made any official statements about the incident.
Hacking Incidents and Crypto Security: Indeed, hacking incidents continue to trouble the crypto space. BeInCrypto had previously reported a reduction in hacking incident frequency by over 65% as of April 2024. Yet, the loss amounts remain significant. According to the SlowMist Weekly Security Report from April 28 to May 4, 2024, the total losses from crypto-related security incidents reached $71.39 million. This attack on Sonne Finance highlights the vulnerabilities in the decentralized finance (DeFi) sector, emphasizing the need for strong security measures to protect digital assets.
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