A trader lost $140,000 in cryptographic currency after connecting to the DeFi service.

The user confirmed the operation, which enabled the platform to write off their funds at any time. Because of this, the trader’s capital disappeared at night.

A user under the conditional name “John Doe” lost about $140,000 in cryptographic currency after connecting to the DeFi platform. Alex Manushkin, researcher of ZenGo’s digital asset wallet in a series of posts in his Twitter account, told us about it.

John connected to the Unicats platform to make money on it with the help of “profitable farming”, said Manushkin. This strategy involves opening a deposit that will earn interest in another cryptographic currency. In this area, the deposit rate is often thousands of interest per annum, although this yield is usually offered in the first couple of days.

Users of DeFi platforms need to connect their wallet and allow them to write off their cryptovalue, confirming the transaction in their smart contract. This is required for interaction with the service and is normal practice. At the time of approving such a transaction, you can set a limit on the amount of funds to be written off, which is not the default.

The user did not restrict the withdrawal of crypt currency, but this was not the main reason for the loss of funds, stressed Alex Manushkin. According to him, the smart contract that the user confirmed had a “setGovernance” function that allowed the platform to write off funds at any time without asking for confirmation of the operation.

Thus, John overnight first lost 26,000 UNI tokens, and then another 10,000, the sum of which was about $140,000, said Manushkin. He specified that all the crypt currency was exchanged for Ethereum and then sent to a special service to conceal transactions.

In early October, the pensioner lost more than ₽1 million when trying to buy the crypt currency. A resident of Voronezh confided in an unknown trader who promised to help her make a profitable investment in digital assets. He persuaded the woman to transfer the money to the stock exchange, and then stopped communicating.

Categories: Bitcoin