DeFi Origin Dollar (OUSD) Hacked for $7 Million – Hack or Scam?

Last Updated on 17 November 2020 by CryptoTips.eu


Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]

Are DeFi projects being hacked or are they setup as scams? As the already 4th DeFi coin this month claims to have been hacked, questions are once again abounding. Last month we published an article featuring a warning by contrarian investor CryptoWhale who said the cryptoshere would be hit with an abundance of scams in the DeFi marketplace.

Two days ago Value DeFi was exploited for $ 6 million with 2 flash loans, less than a month ago there was a Harvest Finance hack with $24 million stolen and $15 million was stolen in the bizarre Eminence hack.

This is not a rug pull

In the past hours, Matthew Liu, Co-Founder of Origin Protocol (OGN), a San Franciso-headquartered peer-to-peer commerce startup, posted a message via Medium, in which he admitted that the OUSD protocol had been hacked

And there has been a loss of user funds. We are actively investigating the issue. We are committed to making things right.

There has been a loss of funds of around USD 7m, including over USD 1m of funds deposited by Origin and our founders and employees.

So far all looks normal in the messaging by the startup, but then things turn a bit strange.

We are not going away. This is not a rug pull or internal scam,” he continues, before offering the hacker a job at his company:

We ask that you do the right thing and return the funds. You’ve demonstrated your superior skills as a hacker, and we’d happily hire you as a security consultant. If you return 100% the funds, we promise not to pursue you or any legal action against you. We humbly ask you to consider the hundreds of innocent people you are hurting and return the funds.

Not pursue legal action

Just a tip from a writer about all things crypto. Although we understand that things are stressed, it is probably never a good idea to promise a hacker a job and to not pursue legal action. Also maybe not the smartest move to immediately refer to a possible “internal scam”.