WOOFi Pauses Contracts After $8.5M Crypto Heist

• WOOFi paused the exploited contracts within hours of detecting the breach.
• The exchange pledges full reimbursement and collaborates with security teams to recover stolen funds.

On November 21, 2023, reports indicated that the decentralized finance platform WOOFi suffered an approximately $8.5 million security breach. The platform confirmed it took swift action to contain the breach and is working to address the fallout.

As a precaution, WOOFi temporarily paused the exploited contracts to prevent further unauthorized transactions. In addition, the platform has reached out to the affected customers and assured users it will fully reimburse all losses from the breach.

Blockchain security firm Cyvers identified unusual activity across the Bitcoin, Ethereum, Optimism, and Arbitrum networks. Their analysis revealed that attackers exploited a vulnerability in WOOFi's sPMM algorithm by manipulating the price of WOO tokens. WOOFi is now collaborating with external forensic teams to trace the stolen assets and secure its systems.

This incident highlights the ongoing challenges of crypto-related cybercrimes in 2023. According to reports, total losses from hacks and related exploits have surpassed $1.7 billion so far this year. This trend includes other notable breaches, such as the $126 million hack at the Poloniex exchange and the $48 million theft from KyberSwap. Furthermore, the 2023 Chainalysis mid-year report indicates that overall illicit crypto activity is declining compared to the previous year.

WOOFi’s latest breach underscores the urgent need for enhanced security measures across the crypto landscape, especially as industry challenges continue to intensify.