What happened
EVODeFi ran a multi-chain bridge that carried tokens to Oasis Emerald, among other chains, where the same anonymous team also ran the ValleySwap DEX. On June 7, 2022, users noticed that bridged USDT on Emerald far exceeded the reserves backing it, and EVODeFi paused the bridge the same day. An analysis cited by Crypto Briefing put the net shortfall at about $66M: roughly 96.8M USDT and 293 BTC owed against 18M USDT and 91.5 BTC held, partly offset by surplus USDC and ETH.
RugDoc later reported that the team had put user funds into Terra's Anchor Protocol to fund the bridge and ValleySwap yields, and had minted unbacked USDT on Emerald. When Terra collapsed, the Anchor funds were lost and the bridged tokens lost their backing. The bridge closed, trapping user funds on Oasis.
No outside attacker was involved.
Protocol details
Evidence
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