Another DeFi Hack as Superfluid’s Vesting Contract For QI Gets Exploited

On Feb 8, 2022, Qi Dao tweeted that attackers had exploited Superfluid’s vesting contract for QI. They added that they are investigating the matter, and the users’ funds are still safe on their smart contracts. Additionally, they said that they would issue an update after further investigations.

Qi Dao to Release an Update on Superfluid’s Exploitation

Today, QI Dao, a self-sustained decentralized protocol that allows for borrowing stablecoins using cryptos as collateral, has suffered an attack. They tweeted that attackers had exploited Superfluid vesting contract for QI.

Qi Dao has not offered more information regarding the attack’s nature but has assured its users that all funds are intact. Additionally, they have revealed that they will be coming up with a complete report regarding the attack after further investigations.

The Dao has a token under the ticker name Qi Dao (QI). Following the news of their attack, the coin has been losing value pending a detailed official report. The coin is currently trading at $0.792373, a 24.5% decrease in the last 24 hours.

Crypto-Related Cyber-Attacks Increases

Earlier this year, data tracker Chainalysis reported that scams and cyber-attacks resulted in over $14B losses in the crypto space. It pointed out that DeFi was the iteration of cryptocurrency that suffered the most. The most worrying part was where they detailed how crypto-related crime rose by 79% over a single year.

Many crypto organizations and exchanges lost sizable funds to attacks towards the end of last year. This trend has also been recurring this year. Last month, hackers made away with $80 M from BSC-powered Qubit Finance. The hackers stole over 200K BNB by leveraging a logical error on Qubit’s code to authorize a fake deposit.

Last week, another crypto project, Wormhole Network also suffered a significant loss at the hands of cyber goons. The attackers made away with 120K wETH from the network. The wrapped Ethereum was valued at roughly $325M during the heist. After investigations, the Wormhole DEV team concluded that the attackers minted their ETH and used fake verification to deposit it.

Since cyber-attacks have been skyrocketing and causing hefty losses, will there be an end to them?

Will Crypto-Related Cyber-Attacks Ever Stop?

Even though crypto-targeted cyber-crimes appear to be increasing exponentially, they are in relatively safe regions. The new year Chinalysis report on the 2021 attacks claimed that the increase in cyber attacks in 2021 had a lower magnitude than overall adoption. They further commented that those figures show that crypto-targeted cybercrimes are gradually becoming a smaller part of the ecosystem.

The incoming regulatory structures and the ongoing law enforcement on cryptocurrency can be credited to the hope of better cyber security in the crypto space. Unlike traditional finance, cryptocurrency records every transaction on a public blockchain which can be tracked using the correct tools. This functionality makes it possible to track all crypto funds involved in crimes.

Governments are working hard to do away with crypto-related crimes. For example, last November, the IRS Criminal Investigation Agency said that it had confiscated funds amounting to $3.5 B in cryptocurrency. They explained that the funds collected from cryptocurrency represented 93% of their collection from all nontax investigations.

The DOJ also seized $56 M from a crypto scam investigation. These developments are promising, and the post regulatory crypto era may differ from what is happening currently.