DeFi Protocol BonqDAO and AllianceBlock Lost $120M
When you get into crypto, you should be aware of the risk that you take. You can get a high return, but you have to take a high risk as well. Bad actors are everywhere. If they find any vulnerability or are able to manipulate something to exploit, they will do that to scam and steal.
Hackers were able to steal $120M from DeFi protocol BonqDAO and AllianceBlock. It is shocking that hackers managed to do that. So how did the hackers do that?
According to the blockchain security firm PeckShield, the exploiters changed the updatePrice function of the oracle in one of BonqDAO’s smart contracts to manipulate the price of the wALBT token. Then they took advantage of this situation to exploit wALBT and BEUR. They swapped almost $500,000 worth of BEUR for USDC on Uniswap.
Oracle hack is not new in crypto. Hackers and exploiters managed to manipulate the price to drain the fund from the protocol before. Hackers increase the token price, then sell tokens at a higher price. As a result, they manage to drain the liquidity.
BonqDAO is working on it and paused the protocol for the time being. It is sad that when any hack or scam happens, users who get involved in it become the ultimate losers. The team usually takes the necessary steps to recover the loss and pay the victims somehow if they can.
AllianceBlock finds a way to compensate the victims. The plan is to take snapshots of users’ balances before the exploit. Then they will mint new ALBT tokens and victims will get an airdrop.
In spite of seeing what's going on in crypto, we are still at an early stage. There are trials and errors, and you have to move forward learning from your mistakes. People will innovate and build better systems that will be hard to hack and exploit.
It is disappointing to see something like this, but if you think long-term, you will realize this is just a part of getting better and moving forward. Developers will fix the issues and make things better.
I am optimistic about the future. What we see in crypto, this is not going to go backward. We will see more development, innovation, and adoption of cryptocurrency. Have patience and keep exploring crypto and blockchain.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
Image Sources: 1, 2, and 3.
Reference: 1.
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Hi, I am Rezoanul Vibes. I'm a content creator and passionate learner. I write about finance, cryptocurrency, and lifestyle. I'm glad to meet amazing people all over the world.
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I think it's sad to see but security needs to be considered for all platforms. There just isn't anyway to stop this because there are no laws/regulations on the blockchain.
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Bad actors find out vulnerabilities and take advantage of the system to exploit them. It is sad but this is what is happening.
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