Blueberry protocol suspends DeFi Lending following 457 ETH Hack

Decentralized finance (DeFi) protocol Blueberry, enabling leveraged lending and borrowing, has been forced to suspend operations following the discovery of a very recent hack that caused the loss of 457 Ether (ETH).

Unexpected hack at Blueberry, a decentralized protocol with a reputation for security

The Blueberry protocol known for its secure leveraged loans up to times 20, has been rocked by an incident on February 23The Foundation Blueberry has warned of a vulnerability in progress and recommended that users withdraw their funds immediately.

According to the Foundation, a hacker initially drained 457 ETHor approximately $3 million, but a “white hat” recovered 366 ETH, returning them to Blueberry. Only 91 ETH, or nearly $300,000, were actually stolen.

Despite Blueberry’s swift response to suspend the protocol and secure the funds, some users experienced difficulties in withdrawing their assets due to protocol front-end failures.

The Blueberry also encountered technical problems but were restored about 30 minutes later. The total value locked into Blueberry dropped from $4.5 million to $3.15 million as a result of this hacking attempt.

Suspected Blueberry protocol hacker identified

The identity of the hacker behind this attack remains a mystery, although his Ethereum address, c0ffeebabe.eth, is known. This address had previously returned 2879 ETH to Curve Finance in July 2023 after a similar attack.

According to the team Blueberry discussions are underway with c0ffeebabe.eth in order to agree on the return of the 91 ETH stolen. The stated objective is full reimbursement of the misappropriated sums.

It should be noted that this hack comes shortly after Blueberry published a glowing security audit, praising its robust development strategy and its ability to prevent risks.