Bitcoin ether and other major tokens slipped early Monday, extending a bruising close to November amid fresh panic from DeFi platform Yearn Finance.
BTC, the leading cryptocurrency by market capitalization, fell over 3% to nearly $87,000 in early Asian hours. Ethereum’s native token ETH fell 5%, while SOL, DOGE, XRP fell over 4%, according to CoinDesk data.
Sales accelerated hours after Yearn’s X alert flagged an “incident” in the yETH liquidity pool, while mentioning that its V2 and V3 boxes remain safe and unaffected.
Social media chatter suggested that the attacker exploited a vulnerability to create massive amounts of yETH in a single transaction, draining the liquidity pool and making off with around 1,000 ETH ($3 million), which was routed through mixers. YETH is a user-managed liquidity pool token consisting of various Ethereum Liquid Staking Derivatives (LSTs).
Yearn’s problem comes just days after leading Korean exchange Upbit was hit by a multi-million dollar hack and underscores how institutional inflows have inflated valuations in the crypto market without strengthening security infrastructure.
