UwU Lend loan agreement suffered consecutive attacks by hackers this week, resulting in a loss of nearly $19.3 million for the first time and $3.7 million for the second time. Founder Michael Patryn, also known as Sifu, has been controversial due to his past involvement in fraudulent activities. Aave founder criticized that users should stay away from forks, immature protocols, and incompetent teams.
This week, UwU Lend loan agreement suffered a loss of approximately $19.3 million due to flash loan attacks and sUSDe price oracle manipulation. The project team originally announced on the 12th that they had identified and resolved the vulnerability, and pledged to repay all bad debts as soon as possible.
Blockchain security company SlowMist monitored today that the UwU Lend protocol once again suffered losses, involving an amount of $3.7 million. MetaTrust Alert pointed out that this was the work of the same attacker.
Note: UwU Lend is a lending protocol created by Quadriga CX founder Michael Patryn, also known as Sifu, a controversial figure in the community.
Aave founder: Stay away from forks, immature protocols, and incompetent teams.
In response, the community once again expressed many voices of distrust towards UwU Lend. Aave founder Stani Kulechov criticized, while internet user Rho Rider questioned whether this was a large-scale DeFi rugpull disguised as a series of hacks and liquidations. Coincidentally, the protocol was one of those involved in the liquidation today, and Rho Rider questioned whether Egorov could also be a target or collaborator.
Online detective ZachXBT responded with a meme: “Is the fund safe? No, in fact, the fund belongs to Sifu.”
Founder Sifu is a criminal with a history of fraud.
Michael Patryn, also known as Sifu, is one of the founders of the Canadian cryptocurrency exchange QuadrigaCX, which filed for bankruptcy in 2019. This was followed by a series of scandals and legal issues, including the sudden death of another co-founder Gerald Cotten and the disappearance of $169 million in customer funds.
Patryn’s association with QuadrigaCX and his past identity have attracted widespread attention. Before joining QuadrigaCX, Michael helped operate an identity theft organization called Shadowcrew and pleaded guilty, serving time in the United States.
In 2021, he reappeared under the identity @0xSifu and served as the financial director of the DeFi protocol Wonderland. However, when his true identity was revealed by community members, it sparked controversy, leading to a crisis of trust in the Wonderland team, and ultimately he resigned from that position.