Unleash Protocol Hit by $3.9 Million Exploit with Funds Routed Through Mixing Service

MEVictim · 2025-12-30T14:20:09+00:00

Unleash Protocol lost $3.9 million in a security breach, where an attacker exploited its multisignature governance to gain control and withdraw funds, later obscuring the transaction through a mixing service.

MEVictim

2025-12-30 14:20:09

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Source: CryptoNewsNet Original Title: Unleash Protocol hit by $3.9 million exploit with funds routed through Tornado Cash Original Link: https://cryptonews.net/news/security/32205667/ Unleash Protocol, an intellectual property finance platform built on the Story ecosystem, lost about $3.9 million in a security breach, according to blockchain security firm PeckShield.

The attacker bridged the stolen assets to Ethereum and deposited 1,337.1 ether into a mixing service, a crypto tool commonly used to obscure transaction histories.

Unleash had reported the breach earlier, without initially disclosing the amount.

“Earlier today, we detected unauthorized activity involving Unleash Protocol smart contracts, which led to the withdrawal and transfer of user funds,” the platform said. “Our initial investigation indicates that an externally owned address gained administrative control through Unleash’s multisignature governance system, enabling an unauthorized contract upgrade that allowed asset withdrawals outside approved governance procedures.”

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RiddleMaster

· 3h ago

Speaking of which, Unleash got caught again. What's going on with the Story ecosystem... Are they still walking down the same old path as Tornado Cash?

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0xSoulless

· 17h ago

Another textbook-level 3.9 million USD rug pull, and it still has to go through a tornado cleanup. This trick is so old it could run a class.

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IronHeadMiner

· 17h ago

Another Story ecosystem project has exploded? These days, anything dares to be done...

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MetaMisery

· 17h ago

Another Story ecosystem project was exploited for yield farming, and this time it was used for money laundering with Tornado Cash... Where is the promised security audit?

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AirdropHuntress

· 17h ago

3.9 million lost again, and it's another Tornado Cash money laundering scheme. The Story ecosystem is heading towards disaster.

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