In late 2025, a Singapore-based DeFi lending platform suffered a flash loan attack. The attackers exploited a vulnerability in the smart contract logic, draining liquidity pools of approximately $3 million USD in various stablecoins.
Within minutes, the stolen funds were bridged across three different blockchains (Ethereum, BSC, and Polygon) and funneled through privacy mixers like Tornado Cash to obliterate the transaction trail. The client faced imminent insolvency and a complete loss of user trust.
Our automated AI sentinels detected the anomalous volume immediately. We deployed our "Trace & Tag" system to label the attacker's wallets across all three chains before the funds could settle.
Using heuristic analysis, we correlated the attacker's "mixed" funds with a KYC-verified account on a centralized exchange (CEX) used for gas fees 4 months prior. This broke their anonymity.
We packaged the forensic evidence into a court-admissible format. Working with Singaporean law enforcement and the CEX's compliance team, we secured a freeze order on the attacker's off-ramp accounts.
Facing indisputable evidence and frozen assets, the attacker agreed to a "white hat" settlement. 93% of the funds were returned to the protocol's treasury.
