DeFi Security Breach: SIR.trading Loses $355K in ‘Clever Attack’ Exploit!

This innovative financial products-based DeFi protocol on Ethereum recently faced another DeFi security breach because of an SIR.trading vulnerability on March 30, 2025, wiping out the total value locked (TVL) of the protocol, about $355k. The exploit was analyzed by both security firms, TenArmor and Decurity, and it was found that the exploit was a breach of the Vault contract of the protocol. The event continues to shed light on the ever-present risk to security in decentralized finance ecosystems, calling for critical assessment of the robustness of such newly developed technologies.

SIR.trading Faces Major Security Breach, Losing $355K in DeFi Attack

Security company TenArmor alerted the community about the attack, which was possible due to the uniswapV3SwapCallback function’s vulnerability within the Vault contract. The flaw developed because Ethereum implemented temporary storage in its Dencun hard fork and this enabled the attacker to modify essential security information during program execution. Through brute-force attacks on vanity addresses and custom contracts, the hacker made Vault Protocol authorize their unauthorized address, which led to complete loss in the attack.

The stolen assets led investigators to Railgun, which revealed the currency location to SIR.trading’s founder, Xatarrer, who wanted help recovering his funds. The protocol leader Xatarrer regarded the failure as an unprecedented disaster, yet he showed determination to rebuild after the financial loss. Security experts view the attack as intelligent, as it made use of ephemeral storage, while simultaneously warning that smart contract developers must shore up their defense mechanisms against tomorrow’s vulnerabilities.

The incident in DeFi security breach exposes serious flaws in protocols while creating doubts about transient storage security in emerging Ethereum operations. The exploitation marks the initial widespread applied usage of this technology thus becoming a cautionary lesson for both developers along with DeFi users who must understand the evolving DeFi environment.

Ethereum Price Prediction: Fluctuating Amidst Support and Resistance Levels

Ethereum is trading at $1,795, price action reflects fluctuation between the area of identified support and resistance levels, where previously a breakout occurred but has retraced to test the current support. A mixed set of golden and death crosses on the Moving Average Convergence Divergence pattern suggests a possibility for contradicting momentum. The value of the Relative Strength Index (RSI) signifies a neutral condition, while previous points indicate that the RSI would drift into oversold and overbought territories along with price reversals.

Chart 1, analyzed by anushrivarshney2613, published on TradingView, March 29, 2025.

Recent DeFi security breaches, such as the SIR.trading vulnerability, may cause further price volatility across different kinds of securities. Underlining these events and how Ethereum serves as a major engine in decentralized finance, traders can look forward to continuous critical surveillance for significant breaks above resistance or falls below support to fathom future price movements. The RSI and MACD are also part of the momentum indicators monitored.

What’s Next For Ethereum?

The hacking in the recent DeFi security breach that exploited a critical SIR.trading vulnerability in its Vault contract raises a huge concern about the future of Ethereum and its price trajectory. Despite this incident shedding light on the inherent risks in the DeFi ecosystem, some market analysts are quite optimistic about Ethereum’s price forecast. The bullish sentiment finds credence from increasing network activity and, therefore, increased staking on Ethereum’s proof-of-stake chain.

In the future, projections hint that Ethereum price prediction might witness another jump from $5,500 to $6,700 by the end of 2025 as it continues to dominate decentralized finance and expand its institutional adoption. Still, the recent hackers’ attack indicates that the DeFi system surely needs better security to counter future vulnerabilities, which could shake investor confidence and market backing in the long term.

The post DeFi Security Breach: SIR.trading Loses $355K in ‘Clever Attack’ Exploit! appeared first on Coinfomania.