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DAO Maker Hack Sees $ 7 Million Stolen From Thousands Of Users In Latest DeFi Heist

Over 5,000 cryptocurrency accounts were reportedly hacked in a large cyber attack costing around $ 7 million.

The hack targeted DAO Maker, a crowdfunding platform that helps create fundraising frameworks for startups, Wednesday night EDT.

Colin Wu, a Chinese blockchain reporter, broke the news on Twitter, citing a Chinese crypto blogger called Big Orange.

The hack was confirmed by DAO Maker CEO Christoph Zaknun in a statement, who said the situation had been “resolved”.

Zaknun said the total of $ 7 million was stolen from 5,251 users, with the average user losing $ 1,250 before the exploitation was tracked.

He added: “We have decisively transferred unallocated funds to a brand new secure wallet, while users can still withdraw their funds unhindered, should they choose to do so.”

The DAO Maker team reached out to Cipher Blade, a blockchain forensics organization, to help them return the stolen funds.

Zaknun wrote, “Over the next five days, DAO Maker will work out a set of solutions to mitigate the damage suffered and will work fully to bring the hacker to justice through the massive forensic investigation undertaken.

“All affected users will be notified via email and on their DAO login portal. We would like to thank our past and current customers who have been extremely supportive of us during this turbulent time.”

The type of cryptocurrency that was stolen is called USDC, a token known as stablecoin because its value is tied to that of the US dollar.

The tokens have reportedly been replaced by another type of cryptocurrency known as Ethereum.

The reason the tokens had to be traded instead of being deleted is that USDC’s assets may be frozen, reports BitcoinInsider.

The term DAO refers to a decentralized autonomous organization, which is essentially an automatic blockchain protocol that works without anyone having to get involved. The benefits of a DAO are that it can reduce the costs of running a network because no third parties are needed, according to CoinMarketCap.

The DAO Maker hack is not the first crypto cyberattack to take place in recent days.

Earlier this week, the Poly Network protocol, which is used to trade cryptocurrencies, also announced that it had been hacked, resulting in the loss of $ 611 million worth of Ethereum, tokens on the Binance Smart Chain and of the USDC.

On Thursday, Poly Network said $ 342 million of the stolen assets had been returned and the remaining amount lost stood at $ 268 million from Ethereum.

Poly Network said in a Twitter thread on Tuesday: “We will take legal action and urge hackers to return the assets.”

A stock image shows a person typing on a keyboard in the dark. The Dao Maker hack resulted in the theft of $ 7 million.
Chainarong Prasertthai / Getty