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OpenLeverage Loses $230,000 After Hack and Announces Compensation for Its Users

openleverage hack

TL;DR

  • OpenLeverage suffered cyberattacks, losing $230,000 in assets, reported by Cyvers Alerts on Twitter.
  • The platform temporarily suspended its operations and ensured having insurance funds to cover the losses, avoiding impacting users.
  • OpenLeverage offers a bounty to catch the hacker.

The decentralized protocol OpenLeverage has fallen victim to a series of cyberattacks, resulting in the loss of $230,000 in assets. The attacks were reported by Cyvers Alerts on Twitter, who warned about the transfer of funds to the attacker’s wallet using Tornado Cash, a cryptocurrency mixer that has sometimes been associated with North Korea’s Lazarus Group in money laundering activities.

After successfully halting the attacks, OpenLeverage decided to temporarily suspend its operations and has initiated investigations to assess the real impact and scope of the situation. Fortunately, the company confirmed having sufficient insurance and buyback funds to cover the losses incurred during these incidents, ensuring that users’ funds will not be affected.

Details disclosed by the company indicate that around $220,000 was lost on the BNB chain and $40,000 on Arbitrum. Luckily, OpenLeverage’s prompt response and certainty regarding the availability of funds to cover these losses provide some degree of reassurance for affected users.

OpenLeverage Puts a Bounty on the Hacker’s Head

As an additional measure, OpenLeverage has chosen to temporarily close its trading and lending protocol. Aiming to allow users to withdraw their funds safely. Additionally, they have announced a bounty for whoever can capture the hacker responsible for the attacks. Hoping to recover the stolen funds. However, the exact amount of the reward has not been specified.

openleverage hack

It is worth noting that OpenLeverage had secured an investment from Binance Labs in June 2022. Although the financial details of this investment were not publicly disclosed. This partnership with Binance Labs demonstrates its strength and serves as a badge of reputation for the protocol.

The blockchain industry faces constant attacks on all fronts, and OpenLeverage joins the list of affected parties. However, the platform’s quick and proactive response, along with its measures to mitigate losses and protect user funds. Demonstrate its commitment to the security and integrity of the DeFi ecosystem.

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