Blueberry has temporarily halted its lending activities after being hit by a cyberattack. The attack resulted in the loss of around $1.3 million worth of Ethereum (ETH), equivalent to 457.684573171942049193 ETH. The affected lending markets were Bitcoin (BTC), Olympus (OHM), and USD Coin (USDC).
The Blueberry Protocol Foundation confirmed the attack after PeckShield’s alert about an “apparent front-run” on the protocol. Blueberry is working with security and communications professionals to recover the remaining 91 ETH.
Blueberry has stated that the stolen funds had been front-run by c0ffeebabe.eth but are now safely secured in the Blueberry multisig. C0ffeebabe.eth was famously credited with helping to return 2,879 ETH worth approximately $5.4 million to Curve Finance after it was hacked in July 2023.
Blueberry recently released a security overview on Feb. 22, in which it emphasized its commitment to a “security-first approach to development and risk mitigation to prevent any internal risk brought on by protocol activity”.
The company also claimed to have undergone audits by Hacken and Sherlock. However, the subsequent hacking incident has raised doubts about the effectiveness of Blueberry’s security measures.
Before the attack, Blueberry had a Total Value Locked (TVL) of $4.5 million. The company had forked from the Compound DeFi protocol, but following the attack, TVL fell to $3.15 million, according to data from DefiLlama. Users also complained about experiencing issues when withdrawing funds from the Blueberry website.
Apparently, the app went offline, with a client-side exception error message displayed on the website. After a few minutes, Blueberry announced that it had been able to pause the protocol and bring the website back online.
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