Hackers Stole Over $2.1M From Zunami Protocol

Fenbushi Capital Partner Loses $42 Million in Personal Funds From Supposed Leaked Seed Phrase

Hackers stole over $2.1 million from Zunami Protocol, a stablecoin staking platform with a price manipulation attack. Due to the hack, the native stablecoin has dropped to zero.

While Curve Finance recovered a major portion lost in a recent hack, attackers targeted Zunami Protocol to steal funds.

Hackers Funneled Funds Through Tornado Cash

Blockchain security firm PeckShield said that Zunami Protocol had lost over $2.1 million to hacks from its Curve Pool. It identified that hackers inflated the native stablecoin Zunami USD (UZD) price. PeckShield explained:

“It is a price manipulation issue, which can be exploited by donation to incorrectly calculate the price.”

The hackers then sent the funds to crypto mixer Tornado Cash in various batches. PeckShield shared the flow of stolen funds below.

The flow of funds stolen from Zunami Protocol. Source: X (Twitter)

Zunami Protocol confirmed the hack and informed the users that they were conducting investigations. The platform provides 14% APY on stablecoin staking, claiming it to be the highest in the market. Meanwhile, UZD has lost its peg, trading nearly at zero due to the impact of the hack.

Learn more about liquid stalking here.

UZD price. Source: BeInCrypto
UZD price. Source: BeInCrypto

Curve Finance Hack 

Zunami Protocol’s Curve Pool was drained days after Curve Finance recovered over 70% of the stolen funds from the reentrancy hack. On Aug. 12, BeInCrypto reported that Curve Finance would start reimbursing users after recovering a major portion of the funds due to the efforts of white hat hackers.

Last month, some pools of Curve Finance lost over $50 million due to the malfunctioning reentrancy lock.

Got something to say about the Zunami protocol hackers or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.


In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

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