Yesterday, Linear Finance posted on the X platform stating that LUSD appears to have suffered an attack. During the team's investigation, they advised against purchasing or trading LUSD. Liquidation has been temporarily paused, and user accounts are not at risk.
Several hours later, Linear Finance issued a statement indicating that due to a contract vulnerability, all LUSD liquidity on PancakeSwap and Ascendex had been drained, causing the price of LUSD to plummet to zero. The attacker was able to mint LAAVE tokens without limit and traded them for LUSD on Linear Exchange, subsequently selling them on PancakeSwap and Ascendex.
To protect the protocol, assets, and users, the Linear team has taken the following measures:
Suspended all protocol contracts that allow token minting, burning, or trading.
Disabled the Linear bridge contract for LUSD.
Hired a professional team to track down the attacker and pursue legal action.
Shared information about wallets involved in the attack with major exchanges and authorities.