dForce Hacker Returns $25M in Stolen Funds, Reason Unknown

The attack on the Chinese decentralized finance (DeFi) platform dForce has taken another turn as the hacker returned almost all of the 25 million in the compromised fund.

As seen on public Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term analyzer, the siphoned Ethers were returned in multiple transactions - $2.79 million in the digital currency were returned on Monday while the rest were returned today.

Some of the transactions were extremely large - in one transaction, the attacker transferred 57,992 Ether worth around $10 million to dForce wallet. Another $10 million were transferred using USD-pegged stablecoins including USDT, BUSD, TUSD, DAI, USDC, HUSD, and PAX.

The exact value of the return funds were $24.3 million, a few hundreds of thousands less than the stolen amount, as the attacker converted a portion of the Ether into some other digital currencies.

dForce was attacked last Sunday, resulting in the siphoning of almost 100 percent of the total locked digital currencies on the platform.

A major DeFi platform

Prior to the attack, the platform was ranked among the top 10 DeFi projects and recently raised $1.5 million in a seed round, gaining funds from Multicoin Capital, Huobi Capital and CMB International (CMBI). The company aimed to utilize the funds to increase its staff and in bringing a new product line.

Though the DeFi platform did not reveal anything official about the return of the stolen funds, according to a media report, the attacker decided to return the compromised funds as his IPs were shared with the Singapore police.

Notably, media reports also revealed that the hacker entered into negotiation with the founders of the DeFi project.