[Update] Pike Finance Hacked Twice in Just 5 Days

Pike Finance, a cross-chain lending protocol, has suffered two major hacks within just five days, resulting in millions of USD in losses.

Update Morning of 01/05:

On the morning of 01/05, the DeFi community on Twitter noticed unusual transactions involving the liquidity pools on Ethereum, Arbitrum, and Optimism of Pike Finance. The amounts transferred were 479 ETH, 99,970 ARB, and 64,126 OP, totaling approximately 1.7 million USD.

Details of the Attack:

• Hacked Address: 0xe2912b8bf34d561983f2ae95f34e33ecc7792a2905a3e317fcc98052bce66431
• Method of Attack: The hacker exploited a vulnerability in Pike Finance’s

Pike Finance admitted to being attacked on 30/04. The project stated that during the process of patching the 26/04 vulnerability, the smart contract was paused. However, this pause changed technical parameters, allowing the hacker to gain control over the smart contract of the pools.

Pike Finance’s Offer:

Pike Finance has proposed a 20% bounty if the hacker returns the stolen assets.

Update 29/04:

Pike Finance released the latest report on the incident. According to the report, the vulnerability did not stem from CCTP’s product or Gelato's automation service. Instead, issues in Pike Finance’s end-to-end condition checks allowed the messages to be forged, enabling the hacker to drain funds from the pools.

Original Post on 27/04:

Pike Finance announced that the USDC pools on Ethereum, Arbitrum, and Optimism were hacked early on 27/04, with an estimated loss of about 300,000 USDC. The cause of the incident was forged cross-chain messages on Circle’s CCTP network, the issuer of USDC.

Although the USDC pools on the Base network were not affected, Pike Finance is investigating the vulnerability and plans to compensate affected users. Details of the vulnerability have not been disclosed, and Circle and the CCTP bridge have yet to issue a specific statement.

About Pike Finance:

Pike Finance is a lending solution that allows users to take out cross-chain loans, with collateral distributed flexibly across multiple networks.