Crypto Exchange Upbit Suspends CRV Transactions As $100M At Risk In Curve Finance Hack

In response to a significant security exploit, South Korean cryptocurrency exchange Upbit has temporarily halted deposits and withdrawals for Curve CRV/USD, the native token of stablecoin-focused decentralized exchange Curve Finance.

Upbit advised its users to exercise caution when considering any investments related to the token.
In a statement to its users, Upbit assured that it will continue to closely monitor the situation.

The exchange has also asked its users to be mindful of the increased price volatility of CRV.
Curve Finance, widely regarded as the backbone of the decentralized finance (DeFi) ecosystem, fell victim to a reentrancy attack that risked $100 million worth of digital assets.

This security exploit triggered a knee-jerk reaction in the market, causing CRV's dollar-denominated price to tank by over 15%.

The sudden drop in price threatened the liquidation of a significant borrowed position on Aave AAVE/USD, a decentralized non-custodial money market protocol, raising the risk of market-wide contagion.

Also Read: French Central Bank Finds Wholesale CBDC Could Enhance Cross-Border Payments And Security

Nonetheless, the value of CRV when measured in Korean won (KRW) experienced a significant surge. As per the latest data, the CRV/KRW pair on Bithumb was trading at KRW 5,565 ($4.36), marking an over 500% increase for the day, as shown by the charting platform TradingView.

Meanwhile, an MEV bot operator known as 'c0ffeebabe.eth' managed to recover 2,879 ETH (approximately $5.4 million) and returned it to Curve Finance. These funds had been misdirected from the CRV-ETH liquidity pool during a security breach.

Using an MEV bot, the ethical hacker, c0ffeebabe.eth, successfully outmaneuvered a malicious hacker during the second phase, securing the aforementioned 2,879 ETH.

This amount was subsequently returned by c0ffeebabe.eth to the Curve deployer address, which is presumably its rightful owner, as per on-chain analysis.

Read Next: Gateway By Wormhole Foundation Connects 20+ Blockchains To Cosmos