Curve Finance Exploit Puts $100M+ Worth of Crypto at Risk; CRV Token Tumbles

By coindesk.com July 31, 2023 In Bitcoin, Cryptocurrencies, DeFi, Ethereum, Twitter

More than $100M-worth of cryptocurrency could be at risk due to a bug impacting Curve, a stablecoin exchange at the center of Ethereum’s DeFi ecosystem.

Jul 30, 2023 at 1:25 p.m. PDT

It was unclear at press time how much had been drained from Curve as a result of the attack. BlockSec, a blockchain auditing firm, estimated the total losses above $42 million in a preliminary analysis posted to Twitter.

Please note that this reentrancy issue is associated with the use of ‘use_eth’, which could potentially place the WETH-related pools in jeopardy! @CurveFinance , please DM us if you need any help. https://t.co/vjc1RRce7w pic.twitter.com/Wz8DXJZK7Y

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— BlockSec (@BlockSecTeam) July 30, 2023

The heist destabilized trading markets for Curve DAO’s native CRV token, which was down 17% on the day at a price of $0.61 as of press time. That price action threatened to compound the chaos by potentially forcing a liquidation on the founder of Curve’s $70 million borrowing position on Aave.

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