DeFi Hack Worth $3.4M Raid EraLend, zkSync’s Top Lender

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EraLend, a lending protocol on Ethereum's scaling blockchain, zkSync, suffered a major exploit that resulted in a loss of $3.4 million, according to an analysis by CertiK, a leading company in blockchain security.

The incident was described as a read-only penetration attack, a sophisticated technique that allows the criminal to manipulate the value of an asset by making repeated calls to a smart contract and effectively steal the assets.

🔔 #EraLend Update: ZkSync attack causes $1.7M loss. Check here for the return of your belongings, even if there is no loss. #zkSyncEra pic.twitter.com/h249rQ2DLe

— zkSync (@_zksnyc) July 25, 2023

Eraland's total capital locked up on the platform hit a record high, dropping to $10.75 million from $18.5 million previously, according to data from Defilama.

The credit platform confirmed the security situation in a statement released on social media and announced that the threat has been contained.

He tweeted: “Today we experienced a security issue with our platform. The threat is under control. We have temporarily suspended all credit operations and recommend prohibiting USDC deposits. We are working with partners and cyber security organizations to address this. More updates should follow.

Conic Finance was also used last week, losing 1700 ETH due to a comparable exploit. The thief started a flash loan with 20,000 shares of ETH and transferred these funds to Conic's price oracle, setting up the exploit platform.

This vulnerability was later exploited with the Conic Price Oracle scam, which fetches data from a read-only smart contract provided by a third party.

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