Sonne Finance experienced a security breach resulting in a $20 million loss. The hackers executed their plan in two phases, targeting the USDC and WETH contracts initially, siphoning $3 million, then taking an additional $17 million. Investigators are actively pursuing the culprits.

Meanwhile, trading on Optimism is suspended, while Base markets remain unaffected. Users face a potential 74% loss with Fiat's USD stabilized Optimism coin if they fail to withdraw from the market. Sonne Finance has halted Optimism functions to address the issue.

Although investigations are ongoing, some speculate the incident's connection to recent developments in the lending space. Sonne's native token, Sonne, plummeted by 15%, reducing the platform's market capitalization to $4.25 million.

This event underscores the challenges and vulnerabilities present in the DeFi sector. While DeFi adoption grows, ensuring robust security measures becomes increasingly crucial to protect users' interests.