Despite ceasing operations in December 2023 due to regulatory challenges and low demand, Yield Protocol, a decentralised finance (DeFi) lending platform, fell victim to a hack, resulting in the loss of approximately $181,000 worth of crypto assets.

The attackers exploited vulnerabilities in the smart contracts of the defunct protocol on the Arbitrum blockchain.

Following Yield Protocol's shutdown, investors were advised to withdraw their funds and close their positions, but the hacker managed to drain assets from the protocol's strategic contracts despite these warnings.

CertiK's investigation revealed that the attacker exploited a discrepancy between the pool token balance and total supply using flash-loaned assets.

Despite efforts to recover the hacked funds, Yield Protocol's official support ended in February, and recovery seems unlikely.