Sentiment, an undercollateralized lending protocol, appears to have been mined on April 4 for more than $500,000 worth of cryptocurrency. Data from the Ethereum blockchain shows a transaction that transferred 536,738.410031 USD Coin (USDC) from the Synapse Bridge, and this links to a series of Arbitrum transactions draining coins from the Sentiment protocol.
The wallet that carried out the attack has been labeled a “Sentimentxyz Exploiter” by Arbiscan, and the Sentiment team has announced on Twitter that they are aware of a “potential issue” with the protocol.
The Sentiment team has recently been made aware of a potential issue concerning the Sentiment protocol. We are actively looking into the situation and will provide additional information momentarily.
—Sentiment (@sentimentxyz) April 4, 2023
Twitter user Officer’s Notes has suggested It could be a reentry attack. The user relied on research by @FrankResearcher to come to this conclusion.
The Sentiment team has not yet indicated what measures are being taken to stop the attack or what users should do to mitigate the risk.
This is a development story, and more information will be added as it becomes available.
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