Yearn Finance suffered an exploit that drained about $9 million from its yETH pool. PeckShieldAlert posted the loss estimate on X, linking the breach to a single transaction that minted an excessive number of yETH tokens. The mint drained the pool immediately.
First, the attacker triggered the contract. Then, the pool’s liquidity dropped to near zero in the same call. The exploit hit the Ethereum side of Yearn’s ecosystem, which supports vaults that manage staking and wrapped ETH positions.
Yearn’s yETH token is a yield-bearing asset that tracks staked Ethereum derivatives. Protocols that rely on token mint functions often secure them with internal caps, audits, and delayed ownership transfers. However, the exploited contract allowed uncontrolled minting in this case. As a result, the liquidity pool absorbed the full impact without a time buffer.
Tornado Cash Receives 1,000 ETH
The attacker transferred 1,000 ETH, valued at about $3 million, to Tornado Cash. The transfer used a known Ethereum mixer that pools deposits before splitting them across withdraw addresses.
On-chain data shows repeated 100 ETH transfer chunks flowing to Tornado Cash under the same sender tag. Each 100 ETH line item lists $284,921.69, mapping to a $2,854.49 ETH price at the traced time.
Yearn Finance yETH Exploit Transfers. Source: Etherscan
First, a 1,600 ETH transfer also appears labeled to a Yearn exploiter-linked address, but it precedes Tornado movements in the internal transaction logs. Next, a consolidated 1,000 ETH outflow line item marks the mixer deposits. The pattern shows a clear split—some assets moved, while others stayed.
Wallet Retains $6M After Transfers
The exploiter-controlled address holds about $6 million in remaining crypto assets. Arkham interface data lists a primary wallet value of $6,206,427.
The same image’s wallet panel also logs $5,058,627 in ETH-denominated holdings, including derivatives tied to Rocket Pool and Lido positions. stETH appears staked at Rocket Pool for 234.42 ETH, worth $669,172.95. Lido shows 167.67 stETH valued at $478,626.77.
The wallet breakdown table shows live balances of 857.49 pXETH worth $2,447,696, 742.63 fXETH worth $2,099,554, 128.05 ETH worth $365,517.01, 48.96 cbETH worth $154,861.16, and 26 tETH worth $669,173. No names or personal identifiers reveal who controls the address beyond its public blockchain reference tags.
Yearn Exploiter Wallet Portfolio. Source: Arkham
PeckShieldAlert tagged the event publicly as an attack, not a routine contract function. The breach drew attention because minting functions need fixed limits to prevent sudden liquidity depletion.
The exploit details and ETH movement data trace back to public blockchain security alerts shared on X by PeckShieldAlert.
Ether Slides 5% As Sellers Push Price Below Key Levels
Ether fell sharply on Dec. 1, dropping about 5.3% on the day. The daily candle shows ETH sliding from near $2,992 at the open to roughly $2,834 at the close, a loss of about $158. The move keeps ETH well below its 50-day exponential moving average around $3,392, which continues to slope downward and signals a firm short-term downtrend.
Ethereum ETH Daily Price Chart. Source: TradingView
At the same time, trading volume picked up compared with several recent sessions. The red bars on the daily histogram show sellers dominating flows as price pulled back from its brief consolidation in late November. That extra volume confirms that the latest leg lower is not just a thin-market move but comes with heavier participation.
Momentum indicators also lean bearish. The 14-day RSI sits near 34, below the neutral 50 line and not far from the oversold band. This reading shows that downside pressure has built steadily since October, when ETH last traded comfortably above the 50-day line. For now, the chart points to a market still working through selling pressure after months of lower highs and lower lows.
Source: https://coinpaper.com/12778/yearn-finance-hit-by-9-m-y-eth-exploit-attacker-funnels-eth-through-tornado-cash
