BTC, the leading cryptocurrency by market value, fell over 3% to nearly $87,000 during the early Asian trading hours. Ethereum’s native token ETH fell 5% while SOL, DOGE, XRP fell over 4%, according to CoinDesk data.
The sell-off accelerated hours after Yearn’s X alert flagged an “incident” in the yETH liquidity pool while mentioning that its V2 and V3 Vaults remain secure and unaffected.
Social media chatter suggested that the attacker exploited a vulnerability to mint vast amounts of yETH in a single transaction, draining the liquidity pool and making off with around 1,000 ETH ($3 million), which was routed through mixers. YETH is a user-governed liquidity pool token consisting of various Ethereum Liquid Staking Derivatives (LSTs).
Yearn’s issue comes days after leading Korean exchange Upbit suffered a multi-million dollar hack and underscores how institutional inflows have bloated crypto market valuations without fortifying the security infrastructure.
