QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
$0 USD
MAY 2025
GLOBAL
CURVE FINANCE
DESCRIPTION OF EVENTS
Curve Finance has established itself as a leading platform in the decentralized finance (DeFi) ecosystem, offering efficient stablecoin trading, liquidity provision opportunities, and innovative financial products.
Launched in January 2020, Curve Finance utilizes an Automated Market Maker (AMM) model, allowing users to trade directly against liquidity pools rather than relying on traditional order books. This approach minimizes price slippage, making it particularly advantageous for traders dealing with stablecoins like USDC, DAI, and USDT.
One of Curve's distinctive features is its specialized bonding curves tailored for stablecoin swaps. These curves are optimized to maintain tight price spreads, ensuring that users can execute trades with minimal price impact. This design is especially beneficial for large-volume transactions, as it reduces the potential for significant price fluctuations during trades.
In addition to its core trading functionalities, Curve Finance offers opportunities for liquidity providers to earn rewards. By supplying assets to various liquidity pools, users can earn a portion of the trading fees generated on the platform. The governance of Curve is decentralized through the Curve DAO, where holders of the CRV token can participate in decision-making processes related to the protocol's development and operations.
As of May 2023, Curve Finance introduced its native stablecoin, crvUSD, on the Ethereum mainnet. This overcollateralized stablecoin operates using a mint-and-burn mechanism, similar to other decentralized stablecoins like MakerDAO's DAI. What sets crvUSD apart is its innovative lending-liquidating algorithm, LLAMA, which continuously rebalances collateral to prevent sudden liquidations during market downturns.
Attackers claimed an airdrop.
No users were reported to have fallen for the phishing links posted during the hack.
Curve Finance responded quickly and transparently to the May 2025 compromise of its official X account.
On May 5, 2025, Curve Finance successfully regained control of its compromised X (formerly Twitter) account, with co-founder Michael Egorov confirming the restoration by retweeting the announcement. Shortly after, Egorov asked users who had been blocked by the attacker to come forward, leading many to report being blocked or unfollowed during the breach. By May 6, Curve Finance released a formal update confirming that the breach was limited solely to their X account—no internal systems were affected, no user funds were lost, and there were no known victims of the phishing links posted by the hacker. The platform remains fully operational and is continuing to investigate the incident.
While access has been restored and no damage to user funds or other systems occurred, the team is still working to determine how the breach happened to prevent future incidents. They’ve stated they will share further updates as needed, which may suggest the internal review is not yet complete.
Curve Finance is a leading DeFi platform launched in January 2020, known for its efficient stablecoin trading, low-slippage swaps via an AMM model, and rewards for liquidity providers. Its specialized bonding curves are designed for minimal price impact, especially in high-volume stablecoin transactions. In May 2025, Curve's X account was briefly compromised by attackers promoting a fake airdrop, but the breach was limited to the social media account, with no impact on user funds or systems. The team quickly restored access, issued a public update, and is continuing to investigate the cause while remaining fully operational.
Curve Finance website and Twitter account hacked (Jun 5)
Curve Finance Archived Tweet - Web3IsGoingGreat (Jun 5)
Curve Finance - "We are officially back. Special thanks to everyone who helped to return the account back so fast: @_SEAL_Org, @0xChar, @9gagceo, @pcaversaccio, @ChainPatrol, even @haydenzadams, and of course X support team" - Twitter/X (Jun 5)
Michael Egorov - "Anyone who appears blocked by @CurveFinance while hacker controlled it - please tell!" - Twitter/X (Jun 5)
Michael Egorov - "Now Curve X account is back for real" - Twitter/X (Jun 5)
Michael Egorov - IQ.wiki (Jun 5)
Decentralized finance (DeFi) protocol Curve Finance deployed its highly anticipated native stablecoin called crvUSD on the Ethereum mainnet Wednesday afternoon. - CoinDesk (Jun 5)
Understanding Curve Finance: Earn, Trade, and Farm with DeFi - Return Finance Blog (Jun 5)
What Is Curve Finance? - OSL Academy (Jun 5)
How To Use Curve Finance: A Step By Step Guide - Coin98 (Jun 5)
What Is Curve Finance in DeFi? - Binance Academy (Jun 5)
Curve Finance - "Not really: unclear how account access could be taken. No sign of any client-side compromise" - Twitter/X (Jun 5)
greedisgood - Interaction Claiming Not Hacked - Twitter/X (Jun 5)
Curve Finance - "the incident was limited strictly to the X account. No other Curve accounts were affected. No security issues were found on our side, no user funds were impacted, no victims of phishing links which the hacker posted. All Curve systems remain fully operational." - Twitter/X (Jun 5)
