Deus Finance suffered a flash loan attack that resulted in losses of $13.4 million. Protocol also lost $3 million in a flash loan attack last month.
According to on-chain data, the attack took place around 05:40 CEST. On-chain security firm PeckShield received a flash loan containing a token called DEI paired with USDC to manipulate the price oracle of the attacker in one of the liquidity pools at Fantom. The company said that the flash loan manipulation caused the DEI’s price to rise a lot; He stated that this inflated value of DEI was later used as collateral to borrow additional capital within the same flash loan transaction.
The borrowed capital was then converted to USDC and the attacker repaid the $13.4 million flash loan. The attacker moved funds from Phantom to Ethereum and shuffled them through Tornado Cash.
Deus Finance said in a statement on its Twitter account that the funds are safe. The protocol also stopped the lending of DEI tokens.
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