Hyperdrive Security Breach: $773K Lost, Markets on Hold
TL;DR Breakdown
- Hyperdrive confirms two wallet positions on its thBill markets were compromised
- The malicious actors have made away with $773K in BNB and ETH
- Hyperdrive has paused all money markets as it investigates the matter
DeFi protocol Hyperdrive recently suffered a security breach as malicious actors breached two of its wallet positions on the thBill markets. thBill is the tokenized version of treasury bills issued by the Theo Network. Hyperdrive confirmed that the exploit is not linked to thBill itself but did not reveal any additional details as investigations are ongoing.
Hyperdrive exploit: Attackers steal Binance Coin and Ethereum
Blockchain security firm PeckShield revealed that attackers had managed to gain access to DeFi protocol Hyperdrive’s wallet positions on the thBill markets, who then split the funds and bridged them out. thBill is the digital version of Treasury Bills that allow users to earn yield or interest on them.
Hyperdrive confirmed that while the money market operations will be suspended, the exploit was not in regard to the thBill market, or the HYPED token. It clarified that the positions that were using thBill as collateral were compromised.
Investigation ongoing
Since then, the company has provided details regarding the investigation. Upon initial investigation, Hyperdrive confirmed that the issue pertained to two of its markets, the Primary USDT0 Market and the Treasury USDT Market. Hyperdrive has suspended all of its operations, including withdrawals and the interest mechanisms, to prevent any further malicious activity while it conducts the investigation.
The firm is coordinating with various experts to conduct a thorough investigation before publishing its findings. The team has also warned users from interacting with the protocol during this period.
In the most recent update to the exploit, the team confirmed that it was able to pinpoint the cause of the exploit and has patched the issue. On the other hand, the team has also identified all affected users and will soon announce the compensation plan. While the team confirmed that the issue was only with the two positions and not the broader mechanisms, the team has still prohibited users from interacting with the protocol.
According to Hyperdrive’s official communications, the markets will resume operations in the next 24 hours.
HyperLiquid, the blockchain network on which Hyperdrive functions, was in the headlines earlier this month due to an apparent rug pull by Hypervault. PeckShield had reported a withdrawal of $3.6 million worth of cryptocurrencies from the platform. The withdrawal was suspicious as the funds were bridged to the Ethereum network, then funnelled into Tornado Cash, a platform that allows users to conceal their funds. The network’s X account and its website were also deactivated shortly, leading many to believe the developers had committed a rug pull.
