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OpenLeverage Protocol Hacked
Permissionless lending and margin trading protocol OpenLeverage has reportedly fallen victim to multiple hacks draining $230K worth assets.
Details of the Hack
The hacks were flagged by blockchain security Cyvers Alerts on Twitter. Per the post, the losses incurred are around $230,000 worth of crypto, and the attacker’s wallet was funded by Tornado Cash.
Response and Investigation
Shortly after the hack, OpenLeverage confirmed that it has paused its operations, and investigations are underway. The accumulated insurance and buyback funds are expected to cover the loss.
Impact on Funds
The update from the company confirmed a loss of $220K on BNB Chain and $40K on Arbitrum. However, the in-protocol insurance, OLE buyback fund, and protocol reserves will cover all losses, ensuring no user funds will be lost.
Next Steps
Following the hacks, OpenLeverage has decided to close its trading and lending protocol and is initiating processes for users to withdraw funds. All protocol actions remain paused until withdrawal processes start early next week.
Bounty for the Hacker
OpenLeverage has announced a bounty for the hacker on the return of stolen funds. The exact reward amount has not been specified yet. The trace and legal process will start immediately.
Investment from Binance Labs
OpenLeverage secured investment from Binance Labs in June 2022, although the precise amount of funding remains undisclosed.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
