Hacker drains $1.2 million from Inverse Finance

A hacker has drained about $1.2 million in a flash loan attack on decentralized finance (DeFi) protocol called Inverse Finance.

Inverse Finance had suffered a $15 million exploit in April.

In today’s incident, an unknown perpetrator executed a flash loan attack using 27,000 wrapped bitcoin (worth about $579 million) at around 4:47 a.m. ET.

The exploited funds included 53 BTC and 100,000 USDT.

The exploited funds were sent to Tornado Cash, a popular transaction mixer on the Ethereum network.

PeckShield, a security firm that first noted the incident, said the protocol loss may be larger than the $1.2 million sum pocketed by the exploiter.

Flash loans are loans taken out with a requirement that the borrowed sum be returned in the same transaction.

To update its community, Inverse stated in a Twitter post that it has temporarily paused borrows and was still investigating.