Defi Protocol UwU Lend Suffers $19.3M Exploit: Arkham

As a researcher with experience in the blockchain and cryptocurrency industry, I find the recent exploit of UwU Lend, a lending protocol founded by Michael Patryn (Sifu), to be concerning. The exploit, which resulted in the siphoning of $19.3 million worth of tokens including wrapped ether (WETH), wrapped bitcoin (WBTC) and stablecoins, was carried out before the majority of the tokens were traded on Uniswap.It appears that the lending and liquidity protocol, UwU Lend, has been victim to a hack resulting in a loss of approximately $19.3 million, as reported by various blockchain security companies including Arkham.

One wallet, as indicated by on-chain information, successfully drained a batch of tokens such as wrapped ethers (WETH), wrapped bitcoins (WBTC), and stablecoins. Subsequently, a significant portion of these tokens was sold off on Uniswap.

Patryn experienced a rough patch preceding the launch of UwU Lend. In early 2022, Quadriga CX, a notable crypto exchange, went bankrupt. Shortly following this event, an identified address connected to Patryn transferred approximately $5.5 million in ether (ETH) towards Tornado Cash – a mixer that has since been blacklisted. During this time, Patryn held the treasurer position within the Wonderland DAO.