DeFi Protocol Fluid Reports Hack Affecting Backend System, Promises Full Loss Coverage

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The DeFi protocol Fluid announced a DeFi exploit on June 2 (UTC+8), in which an attacker exploited a vulnerability in its Merkle reward distribution system, stealing 163,706 FLUID and 49,526 GHO tokens. The breach affected only the backend automation system, leaving the core protocol, smart contracts, and user funds untouched. Immediate actions included rotating keys, transferring funds, and isolating the system. The team is working to recover the stolen assets and will cover all losses. A protocol update is expected to restore the Merkle reward claiming function within 10 days, with rewards continuing to accumulate as normal.

According to ME News, on June 2 (UTC+8), the DeFi protocol Fluid released a report on the attack incident. The attacker exploited a vulnerability in components related to the Merkle reward distribution system, stealing approximately 163,706 FLUID and 49,526 GHO. The incident affected only the backend automated systems; the core protocol, smart contracts, and user funds remained unaffected. The attacker leveraged a remote code execution vulnerability in an internally ported Livewire library to obtain operational keys and submit a fraudulent Merkle root. The team has swiftly taken measures, including rotating keys, transferring remaining funds, and isolating affected systems. They are actively working to recover the stolen funds and have committed to fully covering all losses. The Merkle reward claiming function is expected to be restored within 10 days; rewards will continue to accumulate normally during this period, and users need take no action. (Source: Foresight News)

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