Lending and liquidity protocol UwU Lend has suffered an exploit worth $19.3 million, according to several blockchain security firms including Arkham.
On-chain data shows that one wallet managed to siphon a collection of tokens including wrapped ether (WETH), wrapped bitcoin (WBTC) and stablecoins before trading the the majority of it out on Uniswap.
It is currently unclear how the exploit took place. UwU Lend wrote on X that it is still investigating the cause and is “taking all necessary steps.”
UwU Lend is a lending protocol set up by Quadriga CX founder Michael Patryn, who goes by the moniker “Sifu.”
Patryn endured a turbulent period before releasing UwU Lend. Quadriga CX collapsed and soon after an address linked to Patryn transferred $5.5 million worth of ether (ETH) to now sanctioned coin mixer Tornado Cash in 2022, whilst he was the treasurer for the Wonderland DAO.
UPDATE (June 10, 14:46 UTC): Adds response from Uwu Lend.
CORRECTION (June 10, 22:37 UTC): Removes that UwU Lend said it would compensate users; that statement came from an impersonator account.
Edited by Aoyon Ashraf.
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Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.
