{"id":84856,"date":"2023-09-22T10:02:02","date_gmt":"2023-09-22T07:02:02","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=84856"},"modified":"2025-09-12T19:52:43","modified_gmt":"2025-09-12T16:52:43","slug":"stablecoin-%e2%84%93usd-plunges-to-zero-after-linear-defi-hack","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/stablecoin-%e2%84%93usd-plunges-to-zero-after-linear-defi-hack\/","title":{"rendered":"Stablecoin \u2113USD Plunges to Zero After Linear DeFi Hack"},"content":{"rendered":"<p>The Hong Kong-based DeFi project Linear Finance <a href=\"https:\/\/medium.com\/linear-finance\/%E2%84%93usd-exploit-283f2d32a2f3\">stated<\/a> that it was attacked, resulting in the loss of all liquidity in the <a href=\"https:\/\/u1f987.com\/en\/news\/what-are-stablecoins\">stablecoin<\/a> \u2113USD on PancakeSwap and Ascendex.<\/p>\n<p>The price of the token collapsed to zero. The extent of the loss is unknown.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">NEWS: <a href=\"https:\/\/twitter.com\/LinearFinance?ref_src=twsrc%5Etfw\">@LinearFinance<\/a> has reported an attack that resulted in the draining of all <a href=\"https:\/\/twitter.com\/search?q=%24LUSD&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$LUSD<\/a> liquidity on both PancakeSwap and Ascendex.<\/p>\n<p>As a result, the price of <a href=\"https:\/\/twitter.com\/search?q=%24LUSD&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$LUSD<\/a> has fallen to zero.<\/p>\n<p>? <a href=\"https:\/\/t.co\/pjWVaoUEaf\">https:\/\/t.co\/pjWVaoUEaf<\/a> <a href=\"https:\/\/t.co\/lx1GYlyacp\">pic.twitter.com\/lx1GYlyacp<\/a><\/p>\n<p>\u2014 CoinGecko (@coingecko) <a href=\"https:\/\/twitter.com\/coingecko\/status\/1705039881423188249?ref_src=twsrc%5Etfw\">September 22, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abThe attacker was able to mint an unlimited amount of \u2113AAVE and subsequently swap the liquid asset for \u2113USD through Linear Exchange, and then sell it on PancakeSwap and Ascendex,\u00bb the statement said.<\/p>\n<\/blockquote>\n<p>The Linear team has taken a number of steps to safeguard the protocol and user funds:<\/p>\n<ul class=\"wp-block-list\">\n<li>suspended all smart contracts that enable minting, exchanging and burning of tokens;<\/li>\n<li>disabled the \u2113USD bridge;<\/li>\n<li>hired external specialists to track down the hackers and hold them to account;<\/li>\n<li>provided the data on wallets involved in the exploit to major exchanges and law enforcement authorities.<\/li>\n<\/ul>\n<p>The developers pledged to publish further details later and asked users to refrain from trading \u2113USD during the investigation.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">?\ufe0fUrgent Update Re <a href=\"https:\/\/twitter.com\/search?q=%24LUSD&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$LUSD<\/a> ?<\/p>\n<p>The Linear stable coin <a href=\"https:\/\/twitter.com\/search?q=%24LUSD&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$LUSD<\/a> appears to be under an exploit attack. While the team investigates, DO NOT BUY LUSD, DO NOT TRADE <a href=\"https:\/\/twitter.com\/search?q=%24LUSD&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$LUSD<\/a><\/p>\n<p>Liquidations are paused and users accounts are not at risk.<\/p>\n<p>Further updates will follow.<\/p>\n<p>\u2014 Linear Finance (@LinearFinance) <a href=\"https:\/\/twitter.com\/LinearFinance\/status\/1704818417880936535?ref_src=twsrc%5Etfw\">September 21, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to CoinGecko, the stablecoin&#8217;s trading volume over the last 24 hours was about $3 million, roughly $2 million of which came after the exploit.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abRestoring the protocol and redressing user losses will be our top priority until the issue is fully resolved,\u00bb the team stressed.<\/p>\n<\/blockquote>\n<p>Earlier, the DeFi protocol Balancer <a href=\"https:\/\/u1f987.com\/en\/news\/balancer-loses-238000-in-frontend-attack\">reported<\/a> a <span data-descr=\"the user interface with which users interact\" class=\"old_tooltip\">frontend<\/span> hack. The damage was reportedly around $238 000.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Hong Kong-based DeFi project Linear Finance said it was attacked, resulting in the loss of all liquidity in the \u2113USD stablecoin on PancakeSwap and Ascendex.<\/p>\n","protected":false},"author":1,"featured_media":84857,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[44,1093],"class_list":["post-84856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cybercrime","tag-defi"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/84856","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=84856"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/84856\/revisions"}],"predecessor-version":[{"id":84858,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/84856\/revisions\/84858"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/84857"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=84856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=84856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=84856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}