According to data monitored by the 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 on-chain intelligence company Arkham as suspected belonging to the encrypted venture capital company Continue Capital.
On-chain data analyst Yu Jin supplemented that the phishing implementer later converted the stolen assets into Ethereum (ETH), but due to the insufficient depth of the DETH liquidity pool on decentralized exchanges, 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 and the value of the stolen assets to shrink 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 on the Blast ecosystem. According to the agreement’s documents, the Duo Exchange will mint an equivalent amount of DETH or DUSD for each deposit from a liquidity provider (including native ETH, WETH, or USDB). These DRTs can be further used on other protocols, such as collateral, exchange, or leverage trading.
Duo Exchange stated on social media platforms that it is investigating the phishing attack and claimed that DRT can be redeemed for the original principal at a 1:1 ratio as designed. Some members of the cryptocurrency community have taken advantage of this for arbitrage, but others believe there are risks. According to GeckoTerminal data, the trading price of DETH was approximately $1,200, and the price of ETH was approximately $2,400 at the time of publication.
Update: Lin Xiaohong, co-founder of Continue Capital, posted this afternoon, “I accidentally exposed that I didn’t leave the circle, and I passively made headlines for charity.” Combining the above hacker incident and Arkham’s tagging, the address that was attacked earlier may have been his.