Defi Protocol UwU Lend Suffers $19.3M Exploit: Arkham

The protocol was set up by QuadrigaCX co-founder "Sifu."

Lending and liquidity protocol UwU Lend has suffered an exploit to the tune of $19.3 million, several blockchain security firms including Arkham have indicated.

On-chain data shows that one wallet managed to siphon a collection of tokens including wrapped ether (WETH), wrapped bitcoin (WBTC) and stablecoins before trading the the majority of it out on Uniswap.

It is currently unclear how the exploit took place. UwU Lend has not updated its X page and did not respond to CoinDesk's request for comment.

UwU Lend is a lending protocol set up by Quadriga CX founder Michael Patryn, who goes by the moniker "Sifu."

Patryn endured a turbulent period before releasing UwU Lend. Quadriga CX collapsed and soon after an address linked to Patryn transferred $5.5 million worth of ether (ETH) to now sanctioned coin mixer Tornado Cash in 2022, whilst he was the treasurer for the Wonderland DAO.

CoinDesk is an independent operating subsidiary of Digital Currency Group, which owns Blockfolio, Brave, Bullish, CoinStats, CoinTracker, CommerceBlock, Curie, Dapper, Flow, Forkable, GridPlus, Hotpot, InfStones, Kava, Kraken, Luxor, Nifty Gateway, NChain, Openware, Platypus Finance, Portis, Protocol Labs, Radix, Ramp, Scalar Capital, Seven Seven Six, Solana, Sorare, Sparrow, Status, Tally, TaxBit, Threshold, Unstoppable Domains, Valiant, Vast, Verily and XCarnival.

Editing Disclosures

CoinDesk’s editors follow a strict set of editorial policies and we acquire Block.one; both companies haveinterests

Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.