Summary
Sentiment is an undercollateralized DeFi lending protocol originally deployed on Arbitrum, later migrating activity to HyperLiquid L1. On April 4, 2023, the protocol suffered a read-only reentrancy exploit resulting in approximately $1 million in losses, of which 90% was returned by the attacker following a negotiated $95,000 bounty. ZachXBT has flagged the entity for elevated risk; the protocol remains operational with a low TVL of roughly $518,000 as of 2025.
Connected Entities
1 entitiesTimeline(9 events)
2022-09-10
Sentiment raises $2.4 million seed round led by Archetype Ventures, with Castle Island Ventures and others participating.
2023-01-01
Sherlock audit of Sentiment protocol completed; audit judging repository published on GitHub.
2023-04-04
Read-only reentrancy exploit executed on Arbitrum via Balancer integration. Approximately $1 million drained. Sentiment pauses main contract at 18:00 UTC.
2023-04-05
Sentiment team publicly offers $95,000 bounty to attacker with deadline of April 6, 08:00 UTC. Engages PeckShield and law enforcement.
2023-04-06
Attacker returns approximately 90% of stolen funds (~$900,000) after negotiation. Protocol announced 90% recovery.
2023-04-07
Sherlock insurance pays approximately $50,000 to cover a portion of the remaining unrecovered losses.
2023-04-08
Sentiment announces 100% fund recovery and full protocol solvency restoration.
2023-04-11
Sentiment publishes official post-mortem detailing the exploit mechanics and remediation steps.
2025-02-24
Sentiment completes a public token sale raising $1 million, bringing total disclosed funding to $3.4 million. Protocol operating on HyperLiquid L1.
Decision Log
- hash: FvkhMFeUaKrfY3EYGVbFuwGqe4sGyZzZceo9dQ2hqViv
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:42 AM
last updated: 5/28/2026, 3:51:36 PM
avoid.net — verified advice for a post-truth world