Hackers successfully exploit AI trading platform, absconding with $157k in funds.
YIEDL, a cryptocurrency trading platform powered by artificial intelligence, has fallen victim to a security breach, allowing hackers to steal $157,000 worth of various cryptocurrencies through multiple transactions.
According to blockchain security platform Cyvers, the attackers took advantage of a vulnerability in the “redeem function” of the YIEDL contract. This function is responsible for managing the exchange or retrieval of assets under specific conditions.
The attack specifically targeted the Y-BULL vault contract on the BNB Smart Chain. Cyvers’ security analysts confirmed that the hackers deployed a malicious contract to exploit the Y-BULL smart contract, resulting in the withdrawal of multiple assets.
The withdrawals occurred between 01:24 UTC and 02:22 UTC, during which the malicious actors managed to withdraw nearly $160,000 worth of Ethereum (ETH), Binance-pegged Bitcoin (BTCB), and USDC. The hackers then used PancakeSwap, an on-chain platform, to convert the stolen assets into BNB.
This incident occurred just a day after YIEDL announced the launch of the Y-BULL spot vault on the Binance Smart Chain network. In their announcement, they recommended users to transfer their holdings to the new Y-BULL on BSC to save on fees, while also stating that the Y-UP on the OP and Synthetix protocol would continue to operate until further restructuring.
The YIEDL team has acknowledged the hack and is currently investigating its cause. They have advised network participants to refrain from interacting with the recently-released BSC Y-BULL smart contract.
This security breach adds to the increasing number of crypto-related hacks in recent times. Last week, Hedgey Finance, a blockchain infrastructure provider, suffered a similar attack, resulting in a loss of $44.7 million. In another incident on April 15, Grand Base, a DeFi protocol on Base, lost $2 million to hackers.
In related news, the United States is seeking a 36-month jail sentence for the founder of Binance, a major cryptocurrency exchange.
