Multichain DeFi, NFT Platform Dego Finance Suffers $10M Hack

  • NFT & DeFi platform Dego Finance was hacked recently.
  • DEGO token dropped right after the attack, yet it recovered rapidly.
  • Dego Finance lost $10 million, although it informed exchanges to disable deposits.

Recently-launched NFT and DeFi protocol Dego Finance got hacked on February 10, which caused considerable FUD among its users. Specifically, the team disclosed that their addresses providing liquidity on DEXs Uniswap and PancakeSwap were compromised, enabling hackers to siphon $10 million.

As an early measure, Dego Finance reached out to centralized exchanges such as Binance, KuCoin, and Gate.io so that they will disable any deposits from the hacked addresses.

The hack caused its native token DEGO to dip by 20% momentarily to $3.47. Investors were quick to capitalize on the situation and bought the token, leading to a 15% recovery back to $4.

Dego Finance urged the hacker to return the funds, given that the address has now been disabled from transferring the assets to exchanges.

The team said:

We’ll keep all stakeholders updated on the latest developments, as well as talk to reputable security teams on how to identify the hacker and retrieve loss. We would ask the hacker to come forward and communicate.

Dego is a new NFT and DeFi protocol that serves two functions. Namely, it acts as an open and independent NFT system to provide a cross-chain for double-layered infrastructure.

The project is building on multiple blockchains such as Binance Smart Chain (BSC), Ethereum and more, allowing blockchain projects to acquire more users, distribute tokens, and develop more diverse NFT applications.