AI Summary
- Sirio Finance, an upcoming AI-driven lending protocol on Hedera was exploited with millions stolen from pools.
- The attack is a blow to Hedera’s decentralized financial landscape as the Hedera Foundation plans to expand its DeFi ecosystem going forward. .
- On February 1, 2025, Sirio Finance told their Twitter/X followers that the platform had been hacked and that its HSUITE pool in particular was affected.
- HBAR investors have criticized Sirio Finance for potentially “rushing” the launch of their AI-driven protocol.
Sirio Finance, an upcoming AI-driven lending protocol on Hedera was exploited with millions stolen from pools.
According to the new DeFi lending protocol, hackers used three flash loan attacks via Bonzo, before borrowing assets from the platform and withdrawing.
The attack is a blow to Hedera’s decentralized financial landscape as the Hedera Foundation plans to expand its DeFi ecosystem going forward.
Sirio Finance on Hedera exploited in flash loan attack
On February 1, 2025, Sirio Finance told their Twitter/X followers that the platform had been hacked and that its HSUITE pool in particular was affected. Users who interacted with the protocol and lent their funds have lost them in the attack.
Following the exploit, the protocol froze all smart contracts while they worked with the Hedera Foundation and Hashgraph team to make sense of the damage.
Although the team has not given an exact number, around $2 – 3 million may have been stolen from all of the affected pools.
Sirio Finance was audited by QuillAudits, unlike the more familiar CertiK, Trail of Bits, and Pecksheild. HBAR investors have criticized Sirio Finance for potentially “rushing” the launch of their AI-driven protocol.
As recently as February 3, 2025, the Sirio Finance team has informed investors that they’re working in collaboration with the Hedera Foundation and have contacted the hacker via multiple addresses.
From Sirio Finance:
We are collaborating with the foundation using Elliptic and TRM systems to track the funds. As soon as we have any updates, we will share them with you.
We are awaiting a response from the auditing company and are working with other teams to better understand the origin of this hack. As soon as we have more details, we will keep you updated.
Sirio Finance stated that a whitehat deal can be made so that funds can be returned and legal authorities can be avoided. Transparency from the team has been ongoing and allocations of remaining funds and balances involved in the hack have been shared publicly.
Crypto hacks in DeFi
Cryptocurrency protocols, especially within decentralized finance, are commonplace on every blockchain network.
In recent years, Solana has suffered the most from exploits and hacks while Ethereum has been subjected to hacks since its foundation.
On Crypto Twitter, cryptocurrency investigators such as ZachXBT have helped track down crypto hackers and restore funds to exploited protocols and affected users.
It’s unfortunate that Hedera’s decentralized ecosystem has been exploited in this way in light of the Hedera Foundation trying to push DeFi on the network.
