In a swift move to curb further financial damage, the Blueberry DeFi Protocol has temporarily suspended its lending operations following a hacking incident that resulted in the theft of over $1.3 million in Ether. The breach, announced on February 23 by the Blueberry Protocol Foundation, prompted an immediate call to action, urging users to withdraw their assets to prevent additional losses.

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• Blueberry DeFi Protocol temporarily suspends lending services following a hack that resulted in the loss of over $1.3 million in Ether.
• A significant portion of the stolen funds was recovered by a white-hat hacker, with efforts underway to fully reimburse affected users.
• Despite the exploit, the Blueberry website has been restored and is fully functional, highlighting the protocol’s commitment to security and quick response.

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Blueberry Protocol Halts Lending After $1.3 Million Ether Theft

Despite initial challenges, including temporary access issues to the protocol’s website and app, the Blueberry team succeeded in halting the compromised services within half an hour of the announcement. The website has since been restored and is fully functional, reassuring users of the protocol’s quick response to the security breach.

In a fortunate turn of events, a significant portion of the stolen funds was recovered by a white-hat hacker, c0ffeebabe.eth, who managed to secure 366 ETH (approximately $1.07 million) of the initially lost 457 ETH (about $1.34 million). These funds have been safely returned to Blueberry’s multi-sig wallet. The protocol has confirmed that the vast majority of the affected assets have been reclaimed, with a net loss of 91 ETH. Efforts are underway to fully reimburse the users impacted by this incident.

The Blueberry Protocol is known for its decentralized lending and borrowing services, offering users opportunities for leveraged investments up to twenty times the collateral value. Before the security breach, the protocol boasted a total value locked (TVL) of $4.5 million, according to data from DefiLlama. The TVL has since adjusted to $3.11 million post-exploit.

Blueberry’s commitment to security was highlighted in a “security overview” shared on February 22, where the protocol detailed its preventive measures and collaborations with audit firms Hacken and Sherlock for token security evaluations. Notably, the announcement regarding this security review has been removed from Blueberry’s online presence following the exploit. 

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