Although not many people know about the Cashio project, we are talking about millionaire losses of a token that was trading at one dollar, something quite respectable, to have a value that is practically zero.

The price of Cashio’s stablecoin CASH, which is indexed in dollars, has fallen from $1 to $0.00005 after an infinite minting bug allowed attackers to mint tokens without posting collateral (if you don’t know it’s a stablecoin here we explain it).

Cashio developer 0xGhostChain took to Twitter to warn people that “will not mint any CASH“, adding that the team “is investigating the issue and we believe we have found the root cause. Please withdraw your funds from the pools“.

According to DeFiLlama, the Cashio protocol has lost about $28 million due to this issue. However, Samczsun, a research partner at investment firm Web3 Paradigm, shared a darker picture on Twitter today.

Another day, another Solana fake account exploit. thistime, @CashioApp lost around $50M (based on a quick skim). How did this happen? pic.twitter.com/t7ThWL4zr1

— samczsun (@samczsun) March 23, 2022

The researcher wrote: “Another day, another Solana fake account exploit. This time, Cashio App has lost around 50 million dollars (according to a quick glance). How has this happened?“

The Cashio hack is not without precedent: This is not the first time that a DeFi protocol has been looted by the millions via an infinite minting bug. In December 2020, a group of DeFi developers used a similar exploit in the insurance project DeFi Cover and minted fake tokens to provide liquidity to Balancer.

The attackers then swapped the minted tokens for COVER tokens, which were then repeatedly sold on exchanges. The total damage from the attack was $3 million, which was allegedly returned in full.

Last summer, attackers reduced the price of SafeDollar’s eponymous stablecoin to zero after looting $250,000 worth of stablecoins from the platform’s liquidity pools, and then fenced the stolen coins into PolyDex.

These types of actions show that fear and respect for cryptocurrencies makes sense. The lack of international organizations that support it makes it possible to carry out these embezzlements where everyone loses out.