Decentralized Cross-Chain Lending Protocol Pike Finance Loses $1.6 Million in Hack

Pike Finance, a decentralized finance protocol specializing in cross-chain lending, recently experienced a hacking attack resulting in a substantial loss of over $1.6 million worth of altcoins. The attack targeted the Pike Beta protocol on Ethereum, Arbitrum, and Optimism, resulting in the loss of 99,970.48 ARB, 64,126 OP, and 479.39 ETH.

The exploit is linked to a previous vulnerability in USDC transfers that cost the protocol $299,127. Pike Finance attributes the loss to weak security measures in functions managing USDC transfers via cross-chain transfer protocol. The exploit allowed attackers to manipulate receiver addresses and amounts, bypass admin access, and withdraw funds.

Pike Finance, launched in 2023, secured $50,000 in funding from Circle and Wormhole to launch its mainnet in early Q1 of 2024. The protocol offers users the ability to supply and borrow native assets on various blockchain and sidechain networks.

In response to the hack, Pike Finance is offering a 20% reward for the return of the funds or any information leading to their recovery.

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