Upbit Stop Trading Curve Finance Tokens After Hacking Attacks

CRV was hacked. (Photo; Doc. Beatdautu)

JAKARTA - Upbit, one of South Korea's leading crypto exchanges, has stopped trading Curve Finance (CRV) tokens after experiencing massive exploitation over the weekend.

The move was taken to protect users and mitigate potential losses. Curve Finance, which is the second largest decentralized financial exchange (DeFi) on Ethereum after Uniswap, experienced a bug reentrance attack that exploited vulnerabilities in the Vyper programming language.

The attack caused several poolstablecoins on the platform to be exposed, threatening crypto assets worth more than 100 million US dollars (Rp 1.5 trillion). The affected Pool includes alETH, msETH, and PETH, which play a role in pricing and liquidity in various DeFi services.

For information, the term pool in crypto refers to a collaborative collection of several miners who combine computing power both in the context of mining pools and in the context of liquidity pools.

The Curve team is currently assessing the situation and is committed to updating the community as developments occur. However, they have responded by overcoming all the affected pools and ensuring the safety of other pools.

While Upbit has stopped the withdrawal and deposit of CRVs, other crypto exchanges such as Binance, Huobi, and OKEx still allow trading. However, Huobi followed the situation closely to anticipate further developments.

The impact of the Curve Finance exploit is also seen in the price of CRV which has decreased significantly. On July 30, the price of CRV tokens fell by 12.36% to 0.61 US dollars (equivalent to Rp9,200). This price drop also poses a liquidation threat to the debt position of the founder of Curve worth 70 million US dollars (Rp1 trillion) on the DeFi loan platform, Aave.

This attack adds to the new chapter of a series of hacking attacks that interfere with the DeFi sector. Previously, similar attacks had hit projects such as Hundred Finance andori DEX, which lost billions of dollars due to exploits on the Ethereum layer-2 blockchain platform and the DeFi Euler Finance protocol.

This situation causes instability in the cryptocurrency market in general, thus fluctuating in Bitcoin and Ether. Upbit's announcement reaffirms the importance of prudence for investors related to CRV and encourages users to always be vigilant and keep up with the latest developments in the DeFi sector.