On September 21, Linear Finance saw its token price drop to zero following a serious hack attempt. The team behind the altcoin project recently published a detailed autopsy report.
LINA price hit zero on September 21
The Linear Finance protocol suffered a major attack on September 21, 2023. This attack caused all ℓUSD liquidity on both PancakeSwap and Ascendex to be depleted and the ℓUSD price to drop to zero. As Kriptokoin.com, we have included the first minutes of the development in this article.
AAVE tokens were responsible
The attacker was able to print an unlimited amount of ℓAAVE. He then exchanged this liquid asset for ℓUSD on the Linear Exchange. Immediately after these transactions, he sold ℓUSD on PancakeSwap and Ascendex. These quick and strategic moves caused the value of the altcoin to reset.
The Linear team took immediate action to protect the protocol, its assets, and its users.
First, the team stopped all protocol contracts that allowed to mint, burn, or swap tokens. They disabled the Linear bridge contract for ℓUSD. They also began working with an industry-leading team to capture the attacker and bring him to justice.
Information about the wallets known to be involved in this attack was shared with all major exchanges and authorities. This aimed to speed up the capture of the attacker and the provision of justice.
The Linear team has made it a priority to restore the protocol and repair the damage caused to its users. He sincerely apologized to his users. The Linear team stated that they will continue to provide regular information to customers and expect their patience and support during this difficult process. In the official blog post, the team explained what happened step by step as follows:
- All protocol contracts that allow tokens to be minted, burned or exchanged have been paused.
- We disabled the linear bridge contract for ℓUSD.
- The team engaged an industry-leading team to track down the attacker(s) and bring them to justice.
- We shared the wallets involved in the exploit with all major exchanges and authorities.
Undoing the harm done to our users will be our first priority
Altcoin prices associated with the project dropped sharply after the hack attempt. Regarding the compensation process, Linear Finance said, “Restoring the protocol and undoing the damage caused to our users will be our top priority until the issue is completely resolved. We sincerely apologize to all our users. “At this stage, we unfortunately ask for your patience and support and assure you that we will continue to update you regularly,” he wrote.
As a result, this massive attack in the crypto world caused the value of the altcoin to reset. However, the Linear team stated that it will do its best to overcome this problem and regain the trust of its users. Such attacks once again revealed how important security and control in the crypto industry is.
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