DeFi trading platform Dango has reported a security breach resulting in the unauthorized transfer of 410,010 USDC to Ethereum. An additional $1,490,012 remains on-chain and is recoverable. The incident was caused by a logic flaw in the insurance fund donation system, which allowed donations without verifying if the amount was positive, enabling attackers to withdraw USDC collateral. The vulnerability is confined to the insurance fund module and does not affect other trading systems. Dango has paused operations and initiated a recovery process, promising full compensation to affected users.