The cryptocurrency space has become synonymous over the years with hacks, cyberthieves and malicious behavior. It has been announced that another digital currency platform has fallen victim to such antics. This time, the victim happens to be Akropolis, which is reporting more than $2 million in Dai cryptocurrency stolen from its reserves.
Akropolis Is the Latest Exchange to Be Compromised
Akropolis is a crypto lending service that allows crypto holders to pool all their digital funds together in a single account that is then lent out to prospective borrowers. From there, the original crypto owners earn interest on their funds granted the borrower needs to pay the loan back over time.
The company claims it was the recent victim of what’s known as a flash loan attack, which is a type of attack that has grown rather prominent this year. In fact, one of the latest flash loan attacks occurred in October on a company called Harvest Finance, which lost more than $20 million in crypto funds.
Flash loan attacks have been relatively common on firms and enterprises that offer decentralized finance (DeFi) services, and crypto lending falls into this category. Hackers often mix themselves into the pool of lenders and allow users to borrow their funds. From there, however, they can exploit certain coding to escape loan protocols and make off with all the money in the pool. At the time of writing, Akropolis says it may have lost as much as $2 million.
However, there is good news in that the firm claims it has discovered the Ethereum address of the hacker and will monitor it to see if the funds are moved around. Akropolis has already warned several neighboring exchanges about the attack and about the hacker’s credentials. This will give other platforms a chance to recognize the funds and freeze them before the thief can potentially cash out.
At press time, executives say they are exploring different methods of reimbursing customers that have been compromised by the hack.
This Seems to Happen a Lot
2020 has been a huge year for incidents like this. While the money stolen wasn’t much, one of the biggest attacks on record for this period – given how many high-profile accounts were overtaken – took place in July on Twitter. A hacker potentially found a way to garner control over several Twitter accounts for top-of-the-line celebrities including former president Barack Obama, his vice president Joe Biden, SpaceX and Tesla mogul Elon Musk and Microsoft founder Bill Gates.
The hacker put out messages to their followers claiming that sending bitcoin to a certain anonymous address would cause their funds to be doubled. However, this was not the case. The person in control ultimately made off with the funds that were donated (approximately $121,000) with no intention of every being charitable with them.