Zabu Finance, an Avalanche-based decentralized finance (DeFi) protocol, has been exploited for $3.2 million.
The protocol tweeted Saturday that its Spore Pool was possibly under an exploit and confirmed the attack on Sunday.
The attacker used Zabu’s “Transfer Tax” mechanism to mint tokens, causing their value to slide to zero from about $0.0047.
Having removed 4.5 billion ZABU tokens, the attacker then dumped them on the Trader Joe’s and Avalanche Pangolin exchanges on the Avalanche network.
Zabu plans to take a snapshot of the situation immediately before the exploit to protect both users who invested before the hack and those who bought in afterwards.
The exploit totaling an estimated $3.2 million is probably the “first big exploit” on the Avalanche blockchain, according to DeFi analytics provider DeFiprime.
Litecoin has been hit with high volatility after skyrocketing in price amid Walmart partnership rumors before promptly crashing back down.
On Monday, the price of the cryptocurrency surged by more than 35% when rumors surfaced in the form of a press release announcing the retail giant’s partnership with the asset. Learning of this, both the Litecoin Foundation and Walmart came out with statements debunking the rumors, clarifying that the news and the press release were fake.
Within minutes, a massive sell-off ensued, causing LTC’s value to plummet back towards $ 174 USD, roughly returning to the levels it was at a day prior.