Reports have surfaced indicating that OpenLeverage, a decentralized margin trading protocol backed by Binance Labs, has incurred a substantial loss amounting to $236,000 in what appears to be a hacker attack allegedly funded via Tornado Cash.
The attack on OpenLeverage, resulting in the loss of crypto assets, has raised concerns across the crypto community.
CyversAlert has shed light on the situation, revealing that the attacker’s wallet for covering fees was reportedly funded by Tornado Cash, a crypto-mixing protocol sanctioned by OFAC.
However, the specifics of the attack remain murky at present.
Following the dissemination of this news, the OpenLeverage team swiftly confirmed the incident, assuring its user base that the accumulated insurance and buyback funds should be sufficient to offset the losses incurred.
Additionally, the team reassured stakeholders that DistrictOne, a blockchain-based play-to-earn game powered by OpenLeverage, remains unaffected by the attack.
In response to the security breach, OpenLeverage has temporarily paused its protocol operations as an investigation into the incident is currently underway.
This proactive measure aims to mitigate any further potential risks and ensure the safety of users’ funds.
OpenLeverage, which was launched on Ethereum in December 2021, garnered investment from Binance’s venture arm, Binance Labs, in June 2022.
While the exact financial details of the investment remain undisclosed, Binance Labs highlighted the strategic significance of the funding.
Moreover, Binance emphasized that the investment would enable OpenLeverage to bolster its presence on BNB Chain (formerly Binance Smart Chain) and foster the development of a multi-chain ecosystem.
This expansion strategy includes plans to integrate with other EVM-compatible chains such as Polygon and Avalanche, as well as layer-2 solutions like Arbitrum and Optimism.