TechFlow news, according to Cointelegraph, hackers successfully stole funds by exploiting smart contracts of the discontinued decentralized finance (DeFi) lending protocol Yield Protocol.
Yield Protocol shut down in December 2023, citing difficulties in coping with insufficient business demand and global regulatory pressure. After its shutdown, Yield Protocol repeatedly advised investors to close their positions, withdraw funds, and repay outstanding loans. Despite these warnings, an unknown hacker still stole approximately $181,000 worth of crypto assets from Yield’s strategic contract on the Arbitrum blockchain. The incident was first announced by blockchain investigation firm PeckShield and later confirmed by CertiK.
Follow-up investigations by CertiK revealed: "The attacker exploited the discrepancy between the pool token balance and the total supply of flash loan assets, then withdrew additional pool tokens." Official support for Yield Protocol ended on February 2, making it unlikely that the stolen funds can be recovered.
