The decentralized finance (DeFi) protocol Penpie, built on the Pendle yield platform, fell victim to a major exploit on Wednesday, losing around $27 million in various crypto assets. According to blockchain data, the attack targeted staked Ethereum (ETH), Ethena’s sUSDE, and wrapped USDC tokens.
Blockchain security firm Cyvers uncovered suspicious activity surrounding Penpie’s smart contracts and revealed that the attacker executed a malicious transaction funded through a crypto mixing service. The exploiter’s address received 10 ETH (approximately $25,000) via Tornado Cash, a known mixing tool, just hours before the incident.
The stolen assets were later converted into Ethereum (ETH) using the Li.Fi protocol, with the funds then transferred to a new wallet.
$27 Million Vanished in Penpie Hack
Penpie, a protocol relying on Pendle’s yield management platform, has been left reeling from the breach. Pendle, however, confirmed that its own system remains unaffected. Despite this, Pendle swiftly suspended all contracts as a precaution while closely working with the Penpie team to assess the full scale of the damage.
“Pendle’s funds are completely secure,” the company confirmed in a statement. However, it acknowledged the vulnerabilities in the Penpie platform, which prompted an immediate pause in operations.
This news has had a direct impact on Penpie’s native token, PNP, which plummeted by 40%, according to BeInCrypto data. Pendle’s token (PENDLE) also dropped by 8%, underperforming relative to the overall crypto market decline.
A Growing Threat: Crypto Hacks in 2024
This incident is just one in a series of hacks plaguing the crypto landscape in 2024. Immunefi’s latest report highlights over $1.2 billion in stolen funds across 154 hacks this year, with DeFi protocols often being the most vulnerable.
August alone saw crypto losses of $313 million, with two major attacks accounting for $238 million in Bitcoin and $55 million in DAI thefts. Phishing attacks have also surged by 215%, with one August scam netting $55 million.
As the DeFi space grows, the frequency and scale of such attacks underscore the critical need for improved security measures.
