Poolz Finance hacked, token price drops 93%
Hackers on March 15 exploited an arithmetic overflow issue on Poolz Finance, making off with hundreds of thousands of dollars in crypto and causing the platform’s native POOLZ token to lose more than 93% of its value.
According to blockchain security platform AegisWeb3, a hacker attacked the decentralized cross-chain IDO (initial DEX offering) platform Poolz Finance on March 15, taking advantage of an arithmetic overflow on the platform to drain funds from its smart contract.
Per Aegis, the attacker made off with various tokens, including POOLZ, Ecio (ECIO), Adaswap (ASW), and World of Defish (WOD). They have reportedly already converted part of the loot into Binance Coin (BNB) but have yet to transfer it.
According to Peckshield, the multi-pronged attack happened on the Polygon blockchain and the Binance Smart Chain (BSC), and the hacker made off with more than $390,000 in multiple cryptocurrencies.
Poolz Finance placed the loss at around $200,000 and promised to reimburse the stolen funds with reserves from its treasury.
The swapping protocol also warned users against trading their POOLZ tokens, stating it would roll out a new contract for new POOLZ tokens and airdrop them to all affected addresses a block before the hack.
Poolz Finance also indicated that it had already identified and flagged the hacker’s address. Furthermore, it has wholly frozen all POOLZ tokens being ported on the ChainPort crypto bridge to ensure the stolen funds are not moved out.
POOLZ token drops 93% of its price
Following the attack, the price of Poolz Finance’s native token, POOLZ, lost more than 93% of its market value. Data from CoinMarketCap shows that moments before the hack, POOLZ was trading at $4.101 but suddenly dropped to $0.376.
At the time of writing, the token was still struggling to regain a measure of its earlier price and was trading around the $0.1 to $0.2 level.
The prices of ECIO, ASW, and WOD have taken similar tumbles following the hack, although they have made some small recoveries. WOD is currently 33% below its pre-hack price, ASW is still 50% below its Wednesday morning price, and ECIO has lost over 90% of its value.
The attack on Poolz Finance is the latest in a string of hacks perpetuated on DeFi platforms. Several projects, including AllianceBlock, BonqDAO, Sperax, and dForce, have lost hundreds of millions of dollars in crypto assets to bad actors in the last three months.