Yearn Finance experienced an exploit that resulted in the draining of approximately $9 million from its yETH pool. PeckShieldAlert reported the estimated loss on X, attributing the breach to a single transaction that minted an excessive quantity of yETH tokens, immediately draining the pool.
The attacker initiated the exploit by triggering the contract, leading to the pool's liquidity dropping to near zero within the same transaction. This exploit affected the Ethereum side of Yearn's ecosystem, which supports vaults that manage staking and wrapped ETH positions.
Yearn's yETH token functions as a yield-bearing asset that tracks staked Ethereum derivatives. Protocols that utilize token minting functions typically implement safeguards such as internal caps, audits, and delayed ownership transfers. However, in this instance, the exploited contract permitted uncontrolled minting. Consequently, the liquidity pool absorbed the full impact without any time buffer.
Tornado Cash Receives 1,000 ETH
The attacker subsequently transferred 1,000 ETH, valued at around $3 million, to Tornado Cash. This transfer utilized a known Ethereum mixer, which pools deposits before distributing them across various withdrawal addresses.
On-chain data indicates a pattern of repeated 100 ETH transfer chunks flowing to Tornado Cash under the same sender tag. Each 100 ETH transaction was recorded at a value of $284,921.69, corresponding to an ETH price of $2,854.49 at the time of the transaction.
Prior to these Tornado Cash movements, a 1,600 ETH transfer was also observed and labeled to an address linked to a Yearn exploiter, according to internal transaction logs. Following this, a consolidated 1,000 ETH outflow transaction marked the deposits into the mixer. This pattern clearly distinguishes between assets that were moved and those that remained.
Wallet Retains $6M After Transfers
The exploiter-controlled address currently holds approximately $6 million in remaining crypto assets. Data from the Arkham interface lists a primary wallet valuation of $6,206,427.
The wallet panel also details ETH-denominated holdings totaling $5,058,627, which include derivatives linked to Rocket Pool and Lido positions. Specifically, stETH is staked at Rocket Pool for 234.42 ETH, valued at $669,172.95, and Lido shows 167.67 stETH worth $478,626.77.
The wallet breakdown table displays live balances of 857.49 pXETH valued at $2,447,696, 742.63 fXETH worth $2,099,554, 128.05 ETH at $365,517.01, 48.96 cbETH totaling $154,861.16, and 26 tETH valued at $669,173. The address is identified only by its public blockchain reference tags, with no personal identifiers or names revealing the controller.
PeckShieldAlert publicly classified the event as an attack rather than a standard contract function. The breach garnered significant attention due to the critical nature of minting functions, which require fixed limits to prevent sudden liquidity depletion.
The details of the exploit and the ETH movement data are traceable to public blockchain security alerts shared on X by PeckShieldAlert.
Ether Slides 5% As Sellers Push Price Below Key Levels
Ether experienced a sharp decline on December 1, falling approximately 5.3% for the day. The daily price chart shows ETH dropping from a high near $2,992 at the open to roughly $2,834 at the close, representing a loss of about $158. This movement places ETH well below its 50-day exponential moving average, which is currently around $3,392 and trending downward, indicating a firm short-term downtrend.
Concurrently, trading volume increased compared to several preceding sessions. The red bars on the daily histogram illustrate seller dominance as the price pulled back from its brief consolidation in late November. This elevated volume confirms that the latest downward movement is not solely due to thin market conditions but involves more substantial participation.
Momentum indicators also reflect a bearish outlook. The 14-day Relative Strength Index (RSI) is positioned near 34, below the neutral 50 line and close to the oversold band. This reading suggests that downside pressure has steadily built since October, when ETH last traded comfortably above the 50-day moving average. Currently, the chart indicates a market still working through selling pressure after a period of lower highs and lower lows.