A weekend hack that saw almost $300 million drained from a little-known crypto project has triggered a crisis of confidence among decentralized-finance investors, with users pulling billions of dollars from DeFi’s biggest lending platform.
The hackers deposited about $200 million of the tokens they stole on Aave as collateral for borrowing another cryptocurrency, according to cybersecurity researcher PeckShield. That move sparked fears among depositors about possibly worthless collateral on Aave, causing a rush for the exit, crypto portfolio manager Pratik Kala said.