The Ethereum-based decentralized finance project WLEO expended approximately $42,000 worth of the WLEO token. The WLEO agreement was exposed to a hack, enabling the hacker to mint WLEO and interchange it with himself for ETH, exposing a crucial floor in the protocol.
How the attack was executed is still unclear. This is not the first attack of its sort for the Uniswap platform, as criminals purportedly stole between USD 300,000 and USD 1.1 million from the decentralized exchange.
Uniswap remains targeted by hackers scanning new and innovative ways to siphon users’ funds from the protocol. In previous attacks, multiple IP addresses were exposed by hackers, indicating that the funds could be regained, though, when funds do not move the decentralized finance ecosystem. When hackers don’t expose IP addresses, it can be difficult trying to isolate individual criminals.
Following the hack, the Wrapped LEO token (WLEO) plunged by 99%. There is developing matter among users of Uniswap that this kind of attack could grow more prevalent across more liquidity pools and that the population cannot act fast enough to defend against future hacks of this type.
Funds have since been shifted to anonymous accounts without KYC on a centralized exchange, Binance. As such, the likelihood of these funds being reclaimed is exceptionally slim, if not unlikely.
As the investigation remains, the WLEO team has gained some support from the Leo Finance community and seems to be forthcoming with news about the attack as and when it arises.