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DeFi: a 51% attack against PegNet
DeFi: a 51% attack against PegNet
Defi

DeFi: a 51% attack against PegNet

By Alfredo de Candia - 22 Apr 2020

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Another attack against decentralized finance (DeFi) has just ended, this time perpetrated against the PegNet stablecoin: a group of criminals carried out a 51% attack and succeeded, at least in part, as communicated on Twitter by a member of the project team.

To illustrate the attack, a developer explained how it was possible to exploit the power of the network. 

Hackers basically managed to get over 51% of the protocol’s hashpower to alter 1265.79 pJPY (about $11) into 6.7 million pUSD, which were later transferred and converted into other stablecoins.

Was the 51% attack successful?

The criminals managed to generate millions of tokens from nothing, but it is also true that the protocol resisted, not allowing to liquidate these generated tokens, which then forced the criminals to burn them, sending them to an irrecoverable address.

As PegNet itself reiterated, pointing out that its stablecoin is decentralized, in this case the attack did not result in the loss of anyone’s funds.

It is truly frightening how in the space of a week there have been a series of attacks against the decentralized financial sector involving several entities, including dForce.

Luckily in many cases the funds were returned and thus maybe these events can lead criminals to understand that it’s very difficult to hack a platform and later liquidate the stolen tokens.

In the case of dForce, the hackers had to return the stolen funds because they were marked and de facto impossible to spend.

In addition, this series of events emphasizes the security of the industry, considered by many to be too immature. DeFi must improve platforms and pay even more attention to the way users’ funds are managed.

 

Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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