The number of scams has increased as cryptocurrencies enjoy a rapid rise in popularity over the last few years. In 2021, the decentralized finance sector (DeFi), was one of most exploited.

Grim Finance is a protocol that uses the Fantom blockchain. It allows users to place their liquidity pool tokens in Grim Vaults, and then automatically reap the yields and restake rewards. This protocol is just one of many DeFi protocols.

A $30 million hack by Grim Finance
On December 18th, Grim Finance announced that it had suffered an advanced hack, and “over $30 million” worth of cryptocurrencies was stolen from its Grim Vaults.

According to Grim Finance, the hacker exploited the protocol’s vault contract through five re-entrancy loops. The hacker was able to use five loops to create five additional vault deposits while the platform was still processing its first deposit.

Grim Finance has deposited all funds and locked the vaults in response to the network being at risk.

The hackers continued their transactions on the network through December 19, moving up to 1,000,000 FTM at times.

Grim Finance was robbed of $30 million because there wasn’t a reentrancy guard. Hackers have stolen $600,000,000 from DeFi protocols alone in this latest Hack.

The Flipside

• Despite all the exploits, DeFi adoption has reached an all-time high. There are more than 250 billion dollars locked into several DeFi protocols.

What You Need to Care About

DeFi protocols need to solve security issues in order for mainstream adoption. Nearly 80% of all major hack volumes in the crypto industry are now DeFi hacks.

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