Yearn Finance’s yETH Suffers Major Hack, Attackers Send $3M ETH to Tornado Cash
DeFi platform Yearn Finance’s yETH product was hit by an infinite minting of tokens on Monday, draining the complete yETH pool in a single transaction.
Yearn later confirmed the “incident”, assuring that its V2 and V3 Vaults stay safe and unaffected.
According to blockchain data, the exploit generated a near-infinite variety of yETH, draining thousands and thousands from Balancer swimming pools. Attackers roughly profited 1,000 ETH, price $3 million, which was routed by way of the Tornado Cash mixer, Chinese journalist Colin Wu noted.
yETH is an index token consisting of a number of completely different liquid staked variations of ETH, in different phrases, Ethereum Liquid Staking Derivatives (LSTs). The assault was first flagged by an X user Togbe, who highlighted “heavy transactions” on LSTs, together with yearn, rocket pool, origin and dinero.
yETH Incident Puts DeFi Security Under Lens
The incident apparently concerned a number of newly deployed sensible contracts, which self-destructed after the transaction, per blockchain knowledge. The whole monetary losses stay unclear; nevertheless, the yETH pool had a complete worth round $11 million prior to the assault, Dexscreener data shows.
Following the exploit, blended reactions got here from the neighborhood, with some expressing concern over the continued use of outdated contracts.
Besides, Yearn Finance suffered a hack in 2021, affecting its yDAI vault and dropping $11 million in worth. The hacker apparently obtained away with $2.8 million at the moment. Later, that protocol flagged a defective script in December 2023, wiping out 63% of a place in its treasury.
Crypto Lost $127M to Hacks, Scams in November Alone
Meanwhile, blockchain safety agency CertiK confirmed on Sunday that the crypto business suffered an estimated $127 million in losses to hacks and exploits.
The firm’s month-to-month risk report famous that the precise affected funds have been greater than $172 million. However, the numbers diminished by $45 million after among the stolen funds have been recovered.
Balancer DeFi protocol assault tops the listing of main exploits in November, marking considered one of 2025’s largest DeFi safety breaches. The platform lost over $116 million in a sophisticated cross-chain exploit that affected a number of blockchains.
About $135 million was misplaced in DeFi incidents, adopted by $29.8 million drained in change hacks, CertiK knowledge famous.
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