BonqDAO Exploitation Results in $120 Million Loss
BonqDAO Faces Major Security Breach
BonqDAO recently encountered a severe security breach, resulting in a loss of $120 million in assets. The hacker managed to exploit the network by manipulating BonqDAO's smart contract, affecting the Bonq Euro (BEUR) and WALBT tokens significantly.
Exploit Details
The attacker altered the update price function within a smart contract to artificially inflate the price of WALBT. This manipulation enabled the hacker to mint a large amount of BEUR, which was then exchanged for other cryptocurrencies on platforms like Uniswap. The exploit caused a drastic drop in the value of ALBT tokens, prompting liquidation.
Immediate Response and Investigation
In response to the breach, BonqDAO has paused all operations temporarily. The company reassures users that their accounts remain unaffected by the exploit. BonqDAO is actively investigating the incident to identify the perpetrator and has encouraged users not to panic as they work on a solution to allow withdrawal of remaining collateral.
AllianceBlock's Recovery Plan
AllianceBlock, the issuer of ALBT tokens, emphasized that the attack was isolated to specific token troves and did not breach their smart contracts. As part of the recovery efforts, AllianceBlock has suspended trading and pledged to mint new ALBT tokens. These will be distributed to users who suffered losses due to the exploit.
Impact on the Crypto Market
The incident led to a sharp decline in the value of BEUR and WALBT tokens, with respective drops of 42% and 56.51%. This event is part of a broader trend of increasing crypto platform vulnerabilities, as hackers siphoned $3.8 billion worth of assets in 2022.
Conclusion
The BonqDAO exploitation underscores the ongoing risks within the crypto industry. Both BonqDAO and AllianceBlock are taking steps to mitigate the impact on users and reinforce their security measures. This incident serves as a reminder of the importance of robust security protocols in safeguarding digital assets.
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