Poolz Finance has become the latest decentralized finance platform to fall victim to a hack. The DeFi protocol was exploited to the tune of $390,000 earlier today after the hacker took advantage of an arithmetic overflow issue in the contract.
On-chain security firm PeckShield brought the attention of Poolz Finance to the hack earlier today, pointing out the funds drained from the contract thanks to the vulnerability. As per PeckShield’s investigation, the hack occurred on both Binance Smart Chain (BSC) and Polygon.
Addressing the hack in a Twitter thread, Poolz Finance urged users to not trade on the platform. The warning was followed by an update, where the DeFi protocol revealed that $200,000 had been drained from its liquidity on PancakeSwap. The protocol further informed that all remaining liquidity from decentralized exchanges including Uniswap had been removed.
As for the hacker, their address has been flagged on on-chain explorers. Poolz Finance added that a complete freeze had been imposed on all of its porting on the ChainPort.io bridge. The protocol has assured users that it will deploy new liquidity based on the token exchange rate prior to the hack. Additionally, the drained liquidity will be replaced by the company treasury.
Native token POOLZ took a significant hit following the hack, tanking more than 95%. The token is currently trading at $0.15, down from $4 before the hack. Poolz Finance has clarified that a new contract will be deployed for a new POOLZ token, which will be airdropped to all applicable addresses.
The DeFi protocol’s developers are currently working on creating a new contract for POOLZ. The new token has already received support from centralized crypto exchanges like Huobi Global, Gate.io, and MEXC Global. “We are currently working with law force and cyber expert and will provide a resolution to our community soon,” Poolz Finance tweeted.
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Source: Cryptocurrency - investing.com
