dForce Refunds Clients Impacted by Recent $25 Million Hack

DForce _ User Refund _ Asset Recovery _ Hack

Decentralized finance protocol dForce has disbursed all users who were impacted by a recent hack.

The company stated on its Twitter account:

“Over 90% of assets have been distributed to users in less than 24 hours. 100% users have been made whole in the recovery.”

 dForce has lost over 99 percent of its digital assets in an attack on 18 April.

The latest loss recorded by the lending protocol Lendf.me amounted to $25 million worth of Bitcoin (BTC) and Ethereum (ETH).

Lendf, one of the two protocols supported by dForce Foundation, saw the assets exiting from its accounts after a coordinated hack late Saturday and early Sunday.

Hacker unveils identity

On 21 April, the hacker returned the funds to the company after revealing his identity mistakenly.

Even after the funds have been recovered, dForce faced harsh criticism from the crypto community, especially as some see dForce as a “copy” of a similar popular DeFi network; Compound.

Brian Kerr, CEO of Kava Labs, said:

“The dForce team copied code they did not understand from Compound, illegally deployed it as their own while changing a few parts without realizing the security issues, and then they heavily marketed it to the world without first running very basic audits.”

“The fault is both on the dForce team and the users. dForce didn’t understand what they were doing and marketed an unsafe product,” he added.

Earlier, Cryptolydian reported that other DeFi protocol builders speculated that the attack was initiated by imBTC, an Ethereum (ETH) token paired one-to-one with Bitcoin (BTC), allowing the attacker space to siphon funds without pain.

What is not obvious now is whether users could withdraw their funds or that the attacker has taken over all the $25 million that represent more than 99 percent of their savings.

The foundation urged users to use the migration tool to transfer their codes into secure accounts.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.