Dego Finance (2022) — Crypto Hack
LaunderedDego Finance lost $10M when its deployer private keys were compromised, allowing the attacker to drain liquidity pools.
Summary
Dego Finance lost $10M when its deployer private keys were compromised, allowing the attacker to drain liquidity pools.
How It Was Compromised — DeFi via Private Key Compromise
An attacker gained access to Dego Finance's deployer private keys and used them to remove liquidity from multiple pools on Ethereum and BSC. The compromised keys controlled admin functions for several Dego Finance contracts. The attack pattern resembled a sophisticated phishing or supply chain attack targeting the team's key management.
Fund Flow & Laundering Analysis
Stolen funds converted to ETH and BNB via DEX aggregators. ETH portion deposited into Tornado Cash. BNB moved through BSC mixing services. Dego Finance team disclosed the attack and paused affected contracts. DEGO token price dropped ~30% following the attack. No recovery of stolen funds.