PeckShield said the Reverse Finance landing protocol was hacked, as a result of which the attacker withdrew approximately $1.2 million worth of digital assets, and project losses could exceed that amount.

a/ @InverseFinance exploited on https://t.co/OaCemQfWug,
saves ~1.26 million dollars for the hacker (protocol loss could be greater).

— Peck Shield Inc. (@peckshield) 16 June 2022

The company explained that the hacker used the instant loan to manipulate price divination, which calculates the value of LP tokens based on the balance of assets in the liquidity pool.

The attacker pulled 53 BTC and 100,000 USDT from the protocol. At the time of writing ~68 ETH is stored at the address associated with it. He sold the rest of the assets on decentralized exchange Uniswap and sent it to Ethereum mixer Tornado Cash’s address.

The Reverse Finance team also confirmed the hack. To prevent further loss of funds, the developers have temporarily disabled borrowing. They stressed that no user assets were affected during the incident.

Inverse temporarily paused debt following an event this morning when DOLA was removed from our money market Frontier. We are investigating the incident, but no user funding was received or at risk. We are investigating and will provide more details soon.

— Reverse+ (@ReverseFinance) 16 June 2022

Recall that in April 2022, an unknown person pulled over $15 million in digital assets from the Reverse Finance protocol. Then the hacker exploited a vulnerability in the Keep3r price prophecy.