Update: PeckShield, a blockchain security firm, confirmed the total loss to be approximately $1 million. They identified the root cause as the read-only reentrancy of Balancer and provided a link to the related transaction on the Arbitrum blockchain, where Sentiment's DeFi platform operates.

The DeFi lending platform Sentiment has announced that it has likely been hacked. The team has identified the exploit's root cause and taken measures to prevent further misuse of the protocol.

In addition to working with law enforcement, Sentiment has engaged third-party auditors and security firms to address the issue.

Elsewhere, Spreek suggested that the attacker stole between $500,000 and $1 million via Arbitrum ― the blockchain on which Sentiment’s DeFi platform operates.

"actually scratch the 500k number, i missed the other tokens originally. looks like closer to 1m", Spreek wrote.

As of writing, Sentiment has not provided an explanation.

Developer Pascal Marco Caversaccio posited that the event could be the result of a reentrancy attack, in which an external contract repeatedly called a vulnerable Sentiment contract before the latter could update its status.

On the other hand, developer Imaddin Amsif proposed that the attacker may have specifically triggered a self-destruct function within a Sentiment smart contract.