- Solv Protocol, a Bitcoin DeFi platform, was exploited for $2.7 million on Thursday.
- The attacker, who exploited a smart contract vulnerability to mint tokens, was offered a 10% bounty to return the funds.
- Security researchers identified the attack as a re-entrancy bug, which was executed 22 times during the incident.
- Despite over $1.7 billion in on-chain Bitcoin reserves, fewer than ten users were impacted by the exploit.
Solv Protocol announced on Thursday that a Hacker exploited one of its token vaults, stealing $2.7 million in a brazen on-chain attack. The platform, which holds over $1.7 billion in Bitcoin, said fewer than ten users were impacted but pledged to cover the loss of 38.05 SolvBTC.
Consequently, the project offered the hacker a 10% bounty to return the funds via a designated Ethereum address. However, the attacker has not yet sent an on-chain message to that address, according to data from the block explorer Etherscan. Solv Protocol is now investigating the incident with security firms Hypernative Labs, SlowMist, and CertiK.
According to researchers, the hacker exploited a smart contract bug to mint an excessive number of tokens. CD Security co-founder Chris Dior said this vulnerability was exploited 22 times before the tokens were swapped for SolvBTC. Meanwhile, a pseudonymous researcher known as “Pyro” described the incident as a classic re-entrancy attack that has plagued DeFi for years.
Solv Protocol allows users to deposit Bitcoin to receive SolvBTC, a token used for lending and borrowing on other chains. The platform stated it has already implemented measures to prevent a similar exploit from recurring.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
