Hack Hits Crypto Platform, Sparking Trader Concerns

arabictrader.com

According to cybersecurity researchers, the hackers deposited roughly $200 million worth of stolen tokens as collateral on the platform to borrow other cryptocurrencies against them, triggering sharp concerns among depositors that this collateral might be worthless.

The move sparked a sudden crisis of confidence within the platform as users rushed to withdraw their funds on a large scale, in what digital asset portfolio manager Pratik Kala described as a mass exodus.

Platform data showed net outflows of approximately $9 billion recorded since last Saturday, while the total value locked (TVL) on the platform dropped by more than a third to reach $17.5 billion.

The incident brought persistent security risks back into the spotlight across the decentralized finance (DeFi) sector—which allows users to trade and borrow without traditional intermediaries—just weeks after a similar hack led to the theft of around $280 million from another platform.