Yearn Finance’s founder, Andre Cronje, disclosed that a hacker manipulated a loophole in one of his ventures, Eminence. The intruder made off with $15 million.
A Most Dangerous Game
Crojen clarified that Eminence is an ongoing game project. As part of his personal testing on Ethereum mainnet, Cronje deployed smart contracts linked to Eminence. Afterwards, Cronje discovered that $15 million was paid in contracts meant for research.
The $15 million came from users scrambling to purchase the platform’s EMN token on Uniswap. After Cronje retweeted a post by the Eminence Twitter account, the buying started. These traders presumably wanted to move first, purchase the coin, then wait for the price to rise to resell for a profit. This type of market buying is called “apeing.” When the hacker executed the attack, the price of EMN dropped tremendously.
An $8 Million Apology
After the attack, $8 million was submitted as “apology” to Cronje’s Yearn account. Cronje clarified that he would work to refund the funds to impacted parties.