“White hat” hacker Tender.fi accused of withdrawing more than $1.59 million from Arbitrum-based decentralized lending (DeFi) protocol has return the fund. A few days ago, the platform suspended the loan service while trying to recover the assets.
Web3 smart contract auditor CertiK is focused on blockchain monitoring, and analytics firm Lookonchain is conducting investigations. The company tracked down the hackers who committed the crime after discovering a “misconfiguration” in Oracle Tender.fi.
White Hat Hacker Rewarded by Tender.fi
After several attempts by the lender protocol Defi Tender.fi to contact the hacker for the stolen funds, the loan platform stated that “whitehat” made contact and started discussions on how the situation will be resolved for the customer’s funds. The protocol states:
Whitehat has made contact through debank and we are currently in discussions on how to resolve this situation. We will update you with more information when we have it.
After several hours of discussion through on-chain messages in Debank, the protocol stated that it had reached an agreement with the hacker, stating that it had sent a message containing payment terms and agreements. Tender.fi comments:
White Hat will refund all loans minus 62.158670296 ETH, which will be kept as Bounty to help secure the protocol. The Tender.fi team will return the value of the Bounty to the protocol, so that there are no bad debts and the users will remain unaffected.
After violating the protocol, Tender.fi suspended all lending services, stating that they saw an unusual number of loans through the platform, which was finally resolved after the hackers contacted the protocol. Tender.fi concludes:
The actor has completed the payment of the loan. SaFu official fund, post mortem on the road.
Tender.fi TND Token Takes Impact After Security Breach
The original token of the DeFi protocol Tender.fi, under the ticker TND, fell more than 34% before hackers returned the stolen funds to the platform.
TND, traded on the Uniswap decentralized exchange, fell from $2.9 to $1.8 after news of a security breach in the credit platform was published. After the negotiations, the token rebounded and stabilized above $2.70, according to CoinmarketCap data.
On the other hand, the number of Tender.fi transactions on the lending platform has increased since last month, which means that the project is attracting the attention of users. Investors are “actually using their products,” according to a blockchain analyst firm Black Mamba when concluding:
The current APY in Tender is super attractive and in the future, the project will release many interesting features to improve the user experience as well as distinguish the project from other credit platforms in Arbitrum.
Feature image from Unsplash, chart from TradingView.com