DeFi Protocol Troves Vault Hacked, Initial Loss of 8.6 BTC

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A DeFi exploit targeted the Troves protocol on Starknet on October 31, when its xWBTC/WBTC vault was compromised, resulting in an initial loss of 8.6 BTC. The breach occurred due to an outdated rebalancing contract that retained permissions even after being replaced. The team has revoked access and paused the affected vaults, including xSTRK/STRK and xstrkBTC/strkBTC. A protocol update is currently underway to secure the system. The team is tracing the stolen funds and has offered a 1 WBTC bounty for the return of the stolen assets. A post-mortem report and resolution plan will be shared at a later time.

PANews, November 1: Starknet ecosystem DeFi protocol Troves disclosed that its xWBTC/WBTC vault was exploited on October 31, resulting in an initial loss of approximately 8.6 BTC. The attack was limited to this vault; other vaults remain unaffected. The cause was that the old rebalance contract, though replaced, still retained permissions. The team has revoked the relevant contract permissions and proactively paused the affected and potentially exposed vaults, including xWBTC/WBTC, xSTRK/STRK, and xstrkBTC/strkBTC. Troves stated it is continuing to investigate, trace funds, and explore recovery options, while sending an on-chain message to the attacker offering a $1 WBTC bug bounty in exchange for the return of remaining funds. A detailed post-incident report and a plan for affected depositors will be released soon.

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