The token of the DeFi protocol Harvest Finance has dropped by 65% in less than an hour. The drop has been accompanied by the withdrawal of $25M from its pools, followed by the exchange of the stolen funds by renBTC (rBTC). Some of the assets have been processed by the mixer Tornado Cash. Harvest Finance developers have said:
"We are working actively on the issue of mitigating the economic attack on the Stablecoin and BTC pools, and will update in this thread in realtime as soon as additional details are available."
The developers of the project have reported the attack has been carried out by manipulating the prices of the stablecoin on the DeFi protocol Curve Finance, which Harvest Finance interacts with. They claim to have removed "100% of stablecoin and BTC curve strategy funds:"
"Like other flashloan attacks, the attacker did not give time to respond, performing the attack in 7 minutes end to end. This one originated with a large flashloan, and manipulated prices on one money lego."
Representatives of the crypto community have previously pointed out Harvest Finance administrators hold the keys of the protocol and can use them to withdraw user funds.
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