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Onyx Protocol Loses $2 Million in Ethereum After Being Victim of DeFi Exploitation

DeFi Attack: Onyx Protocol Vulnerable to $2 Million Exploit

Decentralized finance (DeFi) project Onyx Protocol is in the spotlight after losing nearly $2 million worth of Ethereum due to an exploit.

The news broke when blockchain analysis company PeckShield reported, just a few hours ago, about the exploit, which involved a wallet holding 1,164 ETH (approximately $2.1 million).

The exploit, valued at $2.1 million, has raised significant concerns in the DeFi space and highlights the risks associated with decentralization and security in this emerging financial ecosystem.

So far, details about how the exploitation occurred and what measures will be taken to address it are scarce. The wallet address used by the exploiter remains a mystery.

Latest Statements From Onyx Protocol

Minutes after the initial news, Alex Onyx, a member of the Onyx Protocol team, posted a statement on X confirming the incident.

This response from Onyx Protocol confirms the exploitation and loss of funds in the amount of 1,163.53 ETH, which is equivalent to approximately $2.1 million. The statement also notes that they are aware of the situation, have closed the vulnerability and are working through the consequences together with their partners.

The DeFi community is closely following this development as they await more information on the specific measures that Onyx Protocol will take to address this security challenge and to restore trust in the project.

Onyx Protocol Falls Victim of $2 Million Exploit Reports

In significant security situations or incidents, DeFi projects should respond promptly, share details about what happened, and provide a plan to address and mitigate the impact.

Transparency and accountability play a vital role in the ecosystem, and this incident will serve as a case study in crisis management in the world of decentralized finance. We will continue to update this news as we receive more information.

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