Dough Finance lost $1.8M in a flash loan attack due to smart contract vulnerability. Attacker exploited unvalidated calldata stealing USDC before converting the assets into 608 ETH. Users urged to withdraw funds to secure wallets.

Dough Finance has fallen victim to a significant flash loan attack, resulting in a staggering loss of digital assets worth approximately $1.8 million. The attack, which exploited vulnerabilities in the protocol’s smart contract, highlights ongoing security challenges within the cryptocurrency space, and specifically within the DeFi space. What happed in the Dough Finance attack? The attack, detected on July 12 by Web3 security firm Cyvers, targeted Dough Finance’s “ConnectorDeleverageParaswap” smart contract. This contract, designed to facilitate transactions within the DeFi platform, failed to adequately validate call data during flash loan executions giving the attacker a chance to manipulate transaction details and illegally transfer of 608 Ether (ETH), valued at approximately $1.8 million at the time of the attack. The funds, originally in the form of USD Coin (USDC), were swiftly converted into ETH using the zero-knowledge protocol Railgun, complicating efforts to trace and recover the stolen assets. Who were affected by the flash loan attack? The Dough Finance flash loan attack primarily affected users who had funds deposited in the exploited contract of Dough Finance. While the lending pools of Aave, another prominent DeFi platform, remained unaffected, the incident underscores the vulnerability of smart contracts and the potential risks associated with decentralized finance protocols. Security experts, including Olympix, emphasized the importance of users withdrawing their funds to secure wallets and refraining from interacting with Dough Finance until the platform issues clear guidance on safety measures.

Remarkably, the attack on Dough Finance adds to a concerning trend of security breaches plaguing the cryptocurrency industry in 2024. According to a recent report by CertiK, on-chain attack incidents have already led to losses exceeding $1.19 billion in the first half of the year, with phishing attacks and private key compromises contributing significantly to these figures.

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DWS plans to have its euro-pegged stablecoin live by 2025. The €941 billion ($1.02 billion) assets management firm recently launched a new company called AllUnity that will unveil the stablecoin.

Deutsche Bank-owned asset management firm DWS is planning to release the first euro-denominated stablecoin in Germany, according to Reuters. Per the report, DWS has created a new platform to be regulated by the Federal Financial Supervisory Authority (BaFin) and which will unveil the euro-pegged stablecoin by 2025. DWS recently launched AllUnity Stefan Hoops, the CEO of DWS, said the new company set to launch the new stablecoin is called AllUnity. DWS partnered with Flow Traders and Galaxy Digital to launch AllUnity in June this year, according to details in the report. While no official announcement has been published yet, this is a move that could be a major step into the crypto space for DWS. The company is a leading fund manager in Europe, currently managing over €941 billion ($1.02 billion) worth of assets globally. When unveiled, the new stablecoin will bring its benefits to both digital asset investors and developers, including in industrial applications. “In the short term, we expect demand from investors in digital assets, but by the medium term we expect wider demand, for instance from industrial companies working with ‘internet of things’ continuous payments,” Hoops said in a statement. Stablecoins and MiCA regulation DWS’s move comes as the EU moves ahead with implementation of the Markets in Crypto-Assets (MiCA) regulation that came into effect on June 30. One of the key regulatory standards is for stablecoins and various issuers and providers have taken steps to align with the law. This includes getting the necessary licenses and approvals. USDC and EURC issuer Circle recently became the first stablecoin issuer to secure approval with the Electronic Money Institution (EMI) license. Binance, on the other hand, moved to delist stablecoins that fail to comply with the MiCA rules. Bitstamp also delisted Euro Tether (EURT) in June.

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