Hong Kong-based Linear Finance Hacked, Stablecoin Liquidity Drained

DeFi protocol Linear Finance was attacked on September 21, with the hacker draining liquidity from its Linear USD stablecoin. According to a blog post, the attacker was able to manufacture a limitless amount of lAAVE tokens before exchanging them for lUSD on the Linear Exchange and selling them on PancakeSwap and Ascendex, effectively bringing the lUSD price to zero. Linear Finance responded by suspending contracts that allowed token minting, burning, or swapping, disabling its lUSD bridge contract, and monitoring the attacker by revealing linked wallet addresses with key exchanges and authorities. The protocol is now trying to repair the damage caused by the exploit to users.

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