DeFi Project Dego Finance Hacked: Exploiters Reportedly Drain Over $10M

Dego Finance was hacked on February 10. Shortly after, it joined forces with prominent cryptocurrency exchanges such as Binance, Kucoin, and Gate.io to close deposits of its native governance and equity token, DEGO. The protocol also urged Uniswap, Poloniex, PancakeSwap, WazirX, etc., to do the same to mitigate the losses.

Dego Finance Hackers Withdraw $10M

Dego Finance’s official Twitter handle claimed that its own address providing liquidity on popular decentralized exchanges – Uniswap and PancakeSwap – was compromised. As a result, DEGO pairs liquidity provided by the team was drained.

The DeFi platform also urged the hackers to come forward and communicate with it.

“We’ll keep all stakeholders updated on the latest developments, as well as talk to reputable security teams on how to identify the hacker and retrieve loss. We would ask the hacker to come forward and communicate.”

According to the blockchain security and analytics company Peckshield, the exploiters withdrew more than $10 billion from Dego Finance as well as from GameFi Incubator Cocos-BCX. The company’s data showed that funds from 13 addresses were drained, which belonged to Binance Smart Chain (BSC), Ethereum, and Cronos.

The exploiters withdrew more than $10 million from @dego_finance & @CocosBCX !
The illegal assets are currently here ETH&BSC: 0x118203b0f2a3ef9e749d871c8fef5e5e55ef5c91

Here is the drained wallets list: pic.twitter.com/xEyjNztAib

— PeckShieldAlert (@PeckShieldAlert) February 10, 2022

DEGO Takes Nearly 20% Plunge

Dego Finance’s token, DEGO took a severe beating following the hack. It slumped by almost 20% from $4.50 to $3.65 in the wee hours of Thursday morning.

For the uninitiated, Dego Finance saw the light of day in 2020 and offered both DeFi and NFT tools. It claimed to be an open-NFT ecosystem that allowed users to mint non-fungible tokens initiate NFT mining in addition to auctions and trading.

It also offers a cross-chain infrastructure to facilitate blockchain ventures to ramp up the user base, distribute tokens, as well as develop more diverse NFT-based apps. In March 2021, Binance announced listing the project in the Innovation Zone.

Rug pulls and hacks have continued to wreak havoc in the DeFi space in recent years. 2021 has been a monumental year for DeFi and an equally monumental year for bad actors in the space. In fact, rug pulls accounted for 37% of all scam revenue last year as opposed to just 1% in 2020. This year as well, little has changed as such events continue to grab headlines.

CryptoPotato recently reported about Pecksheid detecting more than 50 potentially dubious projects on Binance Smart Chain(BSC).