Sonne Finance Loses $20M in an Exploit

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Decentralized lending protocol Sonne Finance fell victim to an exploit on Wednesday morning in Asia, resulting in losses estimated at around $20 million.

According to a post-mortem report from the project, the breach occurred due to a vulnerability in Compound v2 forks, of which Sonne is one.

The hacker successfully exploited this flaw in what is referred to as a “donation attack,” leading to substantial financial losses.

In reaction to the attack, Sonne Finance announced via a post on X that it had paused all its markets on the Optimism network, while markets on the Base network remain operational.

This measure was taken shortly after blockchain security firm PeckShield issued a warning on X, urging Sonne Finance to inspect their timelock contract.

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