Polkadot’s Acala went down by 70% post the hackers’ involvement in issuing 1.2 billion aUSD

By August 25, 2022Polkadot
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Once again, a decentralized finance network has been messed up by certain hackers. These are the same spammers who previously had been successful in violating the safety limits of several other protocols, in the past few months. The latest hacking reports came from Polkadot’s Alcala.

Polkadot’s Defi protocol holding the aUSD ecosystem, disclosed through a post on their official Twitter account, that the operations are brought to a pause, due to the increase in “configuration issues” on the system.

The post has led to a panic state of the clients of the firm since the tweet went public.

Tweet:

@AcalaNetwork

“We have noticed a configuration issue of the Honzon protocol which affects aUSD. We are passing an urgent vote to pause operations on Acala, while we investigate and mitigate the issue. We will report back as we return to normal network operation.”

It is expected that when the hackers gained access to the protocol, they issued more than 1.2 billion aUSD leading to a fall in the crypto-asset of about 70%. When the news was made public, the aUSD had begun tending losses, as the industrial condition remains highly down trending.

The retardation was observed soon after aUSD touched the $1.03 mark for the first time since June 30. The crypto-asset has, since then, gone down to $0.88. Until the current chaos is sorted, no clear statement about the upcoming future of the asset can be predicted.

Although just like Acala, several other DeFi protocols have been facing constant strikes throughout the year. At the beginning of August, CurveFinance, was targeted by hackers, making the DeFi protocol lose nearly $570,000 in the attack. Another similar attack was observed in March, when the DeFi debit and credit protocol Fortress, declared that it has lost about $3 million in hackers’ rail of the exchange.

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