DeFi Disaster! 😱 $9M Vanishes!

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Hark! Attend ye, gentlefolk, to a tale of woe and digital folly. Yearn Finance, a contrivance of modern cunning much lauded for its financial enchantments, hath suffered a most lamentable affliction – a loss of nigh nine million coin of the realm! A villainous rogue, with a knack for codes and a heart devoid of honor, did, by a most ingenious trickery, conjure forth a veritable infinity of these “yETH” tokens. A most preposterous notion, I assure you! 🎭

Pray, let us examine the particulars of this rather scandalous affair.

How the Villainy Was Wrought

’Tis said, by the learned scribes of Yearn Finance itself, that this misfortune occurred on the thirtieth day of November, around the ninth hour after evening. The accursed contract, unlike the more reputable creations of Yearn, possessed a flaw – a weakness in its very foundations! This allowed the knave to mint these phantom yETH tokens without restraint, a folly of the highest order! One might ask, what manner of craftsman builds a system so easily deceived? 🤔

With these counterfeit tokens in hand, the impudent scoundrel proceeded to relieve the treasury of its rightful ETH and those curious liquid-staking assets. A most brazen theft!

Some eight million coin vanished from the principal vault, and a further nine hundred thousand from a pool involving WETH on Curve. In total, a loss of nearly nine million – a sum that could have funded a most lavish banquet, or, dare I say, several!

Three Million Hidden in the Shadows

The vigilant watchmen at PeckShieldAlert inform us that the villain, swift as a fox, conveyed approximately one thousand ETH (worth some three million) into a shadowy realm known as Tornado Cash. A rather suspicious locale, oft frequented by those wishing to obscure their ill-gotten gains. The remaining six million, alas, remains within the grasp of the rogue, at an address known as 0xa80d…c822.

#PeckShieldAlert Yearn Finance @yearnfi suffered an attack resulting in a total loss of ~$9M.

The exploit involved minting a near-infinite number of yETH tokens, depleting the pool in a single transaction.

~1K $ETH (worth ~$3M) was sent to #TornadoCash, while the exploiter’s…

– PeckShieldAlert (@PeckShieldAlert) December 1, 2025

The villain’s purse currently holds a motley collection of ETH, pxETH, frxETH, cbETH, Lido stETH, and Rocket Pool rETH, all of which he has now… staked? A cunning manoeuvre, no doubt, intended to forestall recovery or vex any persistent magistrates! 🤨

Yearn Finance’s Lament

The stewards of Yearn Finance, roused from their slumber, did proclaim that this calamity was contained to this antiquated yETH product, and they assured the populace that the active vaults, and the funds therein, remain secure. A comforting thought, perhaps, but one must still wonder… What safeguards were lacking? They have engaged the services of security experts and auditors to unravel this mystery further. As yet, however, no plan for restoration has been revealed. A most unsettling silence! 🤫

The news of this misfortune did not sit well with the market spirits, causing Yearn’s governance token (YFI) to tumble by a scant 4.4%, trading near the price of three thousand nine hundred and fifty-six coin. A small dip, perhaps, considering the gravity of the situation, but a dip nonetheless. Poor souls!

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2025-12-01 08:08