• Polygon-based protocol 0vix has been exploited for $2M.
• The attacker moved the stolen USDC to Ethereum mainnet and swapped it for 757 ETH.
• 0vix has paused the markets on POS and zkEVM.

Polygon-Based Protocol 0vix Exploited

A Polygon-based decentralized finance (DeFi) protocol, 0vix, appears to have been exploited for $2 million via flashloan, according to blockchain security firm CertiK and Arkham Intelligence. The attacker inflated the price of vGHST to borrow a large amount of USD before moving it to Ethereum mainnet and swapping it for 757 ETH.

0vix Pauses Markets

In response to the incident, 0vix has paused the markets on POS and zkEVM, which will affect oToken transfers, minting and liquidation. The lending protocol is currently working with its security partners to look into the situation related to vGHST.

SEC Action Motivated by Gary Gensler’s Views

Coinbase has suggested that SEC action against cryptocurrencies is motivated by Chairman Gary Gensler’s own views on cryptocurrency regulations. Meanwhile, Gensler analogized crypto vs securities as calling a dog a goldfish; sparking backlash from some members of the crypto community.

US Government Holds Crypto Assets

According to Glassnode data, US government holds $6B worth of Bitcoin assets in various wallets. Furthermore, a vigilante hacker recently burned hundreds of BTC held in wallets used by Russian intelligence agency FSB (Federal Security Service).

Conclusion

Cryptocurrencies continue to be subject to attacks even as regulation tightens around them with governments increasingly taking control over digital assets in their custody.