Hackers exploited the smart contracts of the discontinued DeFi protocol Yield Protocol to steal over $180,000 in cryptocurrency assets

ChainCatcher news, according to Cointelegraph, hackers successfully stole funds by exploiting the smart contracts of the now-defunct decentralized finance (DeFi) lending protocol Yield Protocol.

Yield Protocol shut down in December 2023, citing difficulties in meeting business demands and global regulatory pressures. After the shutdown, Yield Protocol repeatedly advised investors to close their positions, withdraw funds, and repay outstanding loans. Despite the warnings, an unknown hacker still stole approximately $181,000 worth of crypto assets from Yield's strategic contracts on the Arbitrum blockchain. The hacking incident was first announced by blockchain investigation firm PeckShield and later confirmed by CertiK.

Following an investigation, CertiK found: "The attacker exploited the discrepancy between the mining pool token balance and the total supply of flash loan assets, then withdrew additional mining pool tokens." Official support for Yield Protocol ended on February 2, and attempts to recover the stolen funds from the hacker seem unlikely.