Hong Kong's Linear Finance Faces Major Security Breach, ℓUSD Token Liquidity Drained

The defi scene in Hong Kong faced a setback when Linear Finance, a prominent player experienced an unexpected attack.



This week the entire defi sector was shaken by the news that malicious entities had discovered and exploited a vulnerability in Linear Finance. As a result there was an outflow of liquidity from their ℓUSD token causing its value to plummet to an unprecedented low. Linear Finance disclosed that the ℓUSD liquidity from PancakeSwap and Ascendex platforms was drained away.



The attackers cleverly took advantage of a loophole that enabled them to generate a number of ℓAAVE tokens. They then exchanged these tokens for ℓUSD on the Linear Exchange before cashing out on PancakeSwap and Ascendex.



The implications of breaches in decentralized finance are significant. While decentralization offers security it also presents


First found on: https://coinatory.com/cryptocurrency-news/hong-kongs-linear-finance-13484/?utm_source=BG&utm_medium=Blogger+Some+Crypto+Blog&utm_campaign=SNAP