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DeFi Platform Sturdy Finance Exploited for 442 ETH, Attacker Sends Funds to Tornado Cash

2 mins
Updated by Kyle Baird
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In Brief

  • Sturdy Finance lost 442 ETH due to a DeFi exploit, which the attacker has already moved to Tornado Cash.
  • Initial reports claim that the attack appears to be price manipulation rather than a code exploit.
  • Crypto markets remain in a consolidation phase during the morning of June 12.
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Reports are emerging on the latest decentralized finance (DeFi) exploit that has impacted the Sturdy Finance platform. On June 12, blockchain security firm PeckShield posted an alert on the latest DeFi exploit.

The Sturdy Finance platform has been exploited, but it does not appear to be a smart contract hack or security breach.

“The issue seems to be related to the price manipulation.”

DeFi Exploits Persist

PeckShield highlighted the fraudulent address reporting that the exploiter had already transferred 442.6 ETH to Tornado Cash. This makes the haul worth approximately $768,000.

Sturdy Finance acknowledged the attack and paused all trading while it investigated. The platform offers yield farming with staked crypto collateral.

“We are aware of the reported exploit of the Sturdy protocol. All markets have been paused; no additional funds are at risk and no user actions are required at this time.”

However, it did not provide any additional details about how the exploit happened or if asset prices on the platform were manipulated.

There were very few other details regarding this DeFi exploit at the time of writing.

According to the De.Fi Rekt database, there have been nine crypto and DeFi exploits, hacks, and rug pulls so far this month.

Find out how to use analytics platforms to track DeFi:

Exploring DefiLlama: An Extensive Guide to DeFi Tracking

The largest by far was the $35 million Atomic wallet hack on June 4. Additionally, there were five rug pulls on Binance Chain tokens and a flash loan exploit on the Cellframe Network.

It reports a cumulative total of $76.6 billion lost to crypto hacks, exploits, rugs, and scams. However, more than half of that was attributed to the collapse of the Terra/Luna ecosystem in May 2022.

In April, BeInCrypto reported that the U.S. Treasury Department claimed that criminals were exploiting DeFi to launder money.

Crypto Market Outlook

Peak levels of fear appear to have abated over the weekend. As a result, crypto markets remain flat during the Monday morning Asian trading session.

Total capitalization has barely changed over the past 24 hours remaining at $1.09 trillion. Since the SEC’s twin lawsuits and action last week, markets have shrunk by 5.7% resulting in losses of over $80 billion.

BTC is holding steady at $25,829 at the time of writing. Meanwhile, Ethereum prices were down 1% on the day to $1,737. BNB continues to tank, having shed 25% over the past seven days as Binance’s regulatory woes mount.

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
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