Origin Protocol has set a $ 1 million reward

Origin Protocol has set a $ 1 million reward

By bit.team

The Origin Dollar (OUSD) coin was hacked this week, resulting in a loss of $7 million. The company announced a $ 1 million reward for anyone who can help bring the hacker to justice, or return funds.

Appealing to cybercriminals` conscience

On November 18, in his official blog, Matthew lui, CEO of Origin Protocol, confirmed the incident and stated that the reason for the attack was a quick credit transaction.

The use of a fake flash loan by a cybercriminal and vulnerabilities in OUSD contracts initiated the so-called “re-entry attack”, which led to the theft of crypto assets.

The blog says:

“The attack was a re-entry error in our contract. The attacker took advantage of the missing validation in several coins, which allowed the hacker to use the contract with a re-entry attack.”

In September of this year, Origin Protocol launched the OUSD stablecoin, backed by DAI, USDC and USDT deposits and intended for use as a savings account. OUSD allows users to passively earn competitive profits by holding funds in their wallets.

After the OUSD hack, which should be stable at $ 1, it fell to 86 cents.

According to an update on its official blog, Origin is now offering a reward for bringing the attacker to justice. Co-founder of the crypto company Josh Fraser wrote in an update:

“We offer a $ 1,000,000 reward to anyone who provides material information or evidence leading to a refund of customer funds.”

The hacking of the project resulted in the loss of $ 7 million in the combined cryptocurrency Ethereum and DAI stablecoin, including $ 1 million of employees and the company’s founder.

Since November 19, the appeal calls on hackers to keep $ 1 million for themselves, but consider returning $ 6 million from customer funds:

“If you study the wallet addresses where OUSD is stored, you will understand that many of our users are not degenerates or whales, but ordinary people. Keep the company’s funds, but don’t punish our users, many of whom were new to cryptocurrency.”

The Origin Protocol States that they tracked the funds and know that the hacker used the mixers.

Finally, the company expressed its sincere gratitude to the crypto community for receiving unconditional help from its security experts, DeFi engineers, investors, and others during such difficult times.

Negative impact on the DeFi sector

Original Protocol is the latest to suffer from instant loan attacks. Term loans is a new emerging service in the decentralized Finance environment that allows users to borrow funds instantly without the need for collateral to access loans. However, criminals try to use borrowed funds to manipulate the DeFi market-usually referred to as instant credit attacks.

Typically, instant credit attacks occur when attackers lend funds from decentralized financial platforms, but use vulnerabilities in the platform’s code to get away with the catch. Some of the DeFi platforms that have experienced massive hacks and loss of funds include the Harvest Finance Protocol, the Value DeFi platform, and others.