Sonne Finance suffers $20 million loss due to security breach

Sonne Finance fell victim to a security breach that caused the company to lose $20 million. The hackers completed their misdeeds in two phases. They first targeted the company’s USDC and WETH contracts, siphoning off $3 million, and in the next phase they removed the $17 million amount. Concerned investigators are currently involved in identifying and catching the perpetrators.

Currently, every market on Optimism is on strict standstill, while the markets on Base are safe.

As for Fiat’s USD stabilized Optimism coin, there is a good chance that it will cause a 74% loss for users, in the scenario that they hesitate to distance themselves from the market. Sonne Finance has been instrumental in blocking Optimism’s features from addressing the current situation.

Despite the fact that the matter is being closely investigated, some observers believe that the incident was most likely related in some way to the lending space that has been created in recent times. The first coin’s conventional token, Sonne, witnessed a 15% decline after the fiasco, dropping the platform’s market capitalization to $4.25 million.

The incident means that the DeFi arena still faces many hurdles and loopholes. The introduction of DeFi has brought in additional users who can use the technology. Considering this aspect, it only becomes more necessary that strong security features are available to users to safeguard their interests in the future.