Stablecoin Protocol Resupply Suffers Major Crypto Exploit Losing $9.5M

Blockchain security company BlockSec Phalcon discovered an unusual transaction in the stablecoin protocol Resupply’s code, resulting in an estimated loss of approximately $9.5 million in assets.

Notably, Resupply helps stabilize stablecoins with ties to Convex Finance, which enables users to earn more on stablecoins, and Yearn Finance, which aggregates earnings, demonstrating its importance in the crypto finance ecosystem.

Resupply Exploited, Losing $9.5M

BlockSec Phalcon noted that the attack exploited a security vulnerability to steal a significant amount of money. While the exact technical details are still unconfirmed, the $9.5 million loss is a substantial blow to Resupply and its users.

After identifying the problem, the Resupply team noted on X that “any links appearing below this message that claim to be from Resupply are fraudulent, intended to deceive, or designed for phishing.”

Shortly after the firm’s X post, 4x founder, Anshul Dhir, states:

“The ResupplyFi attacker toyed with thin-liquidity markets to skew exchange rates, drained the vaults in seconds, and vanished. Yes, the contracts were audited, but that didn’t save them. A gentle reminder: every time you click ‘Approve’, you hand over spending rights.”

Furthermore, he stressed that “if the yield looks too good to be true, assume the risk curve is just as steep. Code is open, money is open, and so are the attack surfaces.”

The Rise of Crypto Scams

CoinTab reported earlier in June that over $300 million was stolen from the cryptocurrency market in May due to security issues, including phishing and scams. However, these events have shown that attackers are adapting their methods.

Phishing was the biggest problem in April, but in May, flaws in smart contracts emerged as the primary threat, resulting in over $229 million in losses. This represented a significant jump and went against a trend over several years, during which these code-related attacks had been decreasing.

Interestingly, one of the largest attacks occurred against the Cetus Protocol, resulting in the theft of more than $220 million. Other significant losses occurred at BitoPro and Cork Protocol, and more minor breaches affected MobiusDAO and Demex Nitron.

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