Based on data monitored by blockchain security company Scam Sniffer, a certain encrypted wallet address signed a “permit” phishing signature on the second-layer network Blast and lost 15,079 fwDETH (DETH packaged tokens), worth about 35 million US dollars. The stolen address was marked by the chain intelligence company Arkham as suspected to belong to the encrypted venture capital company Continue Capital.
Chain data analyst Yu Jin supplemented that the phisher later converted the stolen assets into Ethereum (ETH). However, due to the insufficient depth of the DETH liquidity pool on the decentralized exchange, only 2,288 ETH was exchanged for 14,079 DETH, and the liquidity pool was emptied by the attacker, causing the DETH/WETH to be highly unanchored. The value of the stolen assets shrank by 85%, from 35.98 million US dollars to 5.5 million US dollars.
DETH is a Duo Re-staking Token (DRT) created by the Duo Exchange Yield Exchange Agreement in the Blast ecosystem. According to the documentation of the agreement, for each deposit by a liquidity provider (including native ETH, WETH, or USDB), Duo Exchange will mint an equivalent amount of DETH or DUSD. These DRTs can be further used in other protocols, such as collateral, exchange, or leveraged trading.
Duo Exchange stated on social media that they are investigating this phishing attack incident and claimed that DRT can be redeemed for the original principal at a 1:1 ratio. Some members of the encrypted community took advantage of this for arbitrage, while others believe there are risks involved. According to GeckoTerminal data, the trading price of DETH was approximately 1200 US dollars at the time of submission, while the price of ETH was approximately 2400 US dollars.
Update: Lin Xiahong, co-founder of Continue Capital, posted this afternoon, “I accidentally exposed that I didn’t leave the circle, and passively made headlines for charity.” Combining the above hacker incident and Arkham’s marking, the address that was attacked earlier may be his.
