BonqDAO Exploited for $90M
- A hacker was able to manipulate the price of the AllianceBlock token on BonqDAO, which allowed him to drain close to $90 million worth of crypto from the protocol.
- Both platforms have paused their services, and are currently in the process of removing liquidity as to hinder the hacker’s ability to convert the stolen tokens.
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Decentralized autonomous organization (DAO) Bonq became the victim of an oracle hack, which allowed an exploiter to siphon roughly $90 million in crypto from the platform, BonqDAO said via Twitter on 2 February.
According to the announcement, the exploiter was able to manipulate the price of the AllianceBlock token (ALBT), and over several transactions was able to drain around 98 million BEUR — a Bonq token pegged to the euro — and 110 million WALBT. Since the incident, both Bonq and AllianceBlock have paused their services and are in the process of removing liquidity as to hinder the hacker’s ability to convert the stolen tokens.
While there is still no official explanation on how the exploit happened, blockchain security firm PeckShield explained that the hacker was able to change a function of the oracle (updatePrice) in one of Bonq’s smart contracts, allowing him to manipulate the price of WALBT. The attacker increased the price of WALBT and minted a large amount of BEUR, after which the price was decreased to almost zero, triggering the liquidation of ALBT troves.
Bonq is now working on a solution to allow users to withdraw their remaining collateral without repaying the BEUR in the troves. AllianceBlock also noted it was working on a plan to compensate affected ALBT holders, and that it has taken a snapshot of holders before the attack and will mint and airdrop new ALBT tokens in the near future. The price of both tokens has fallen down significantly since the incident, with BEUR losing 23% in the last 24 hours, while ALBT lost more than 60% of its price.
- Popular Telegram bot Unibot, which is used to snipe trades on Uniswap, became a victim of a token approval exploit earlier today, when it was switching to a new router.
- After confirming the exploit, Unibot assured users that their keys and wallets were safe, and that the project will compensate all affected users.
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- DeFi protocol Balancer confirmed it was exploited almost a week after disclosing a critical vulnerability affecting several of its boosted pools.
- The platform did its best to mitigate some of the risks but was unable to pause the affected pools, and an estimated $980,000 in DAI were stolen in an attack.
- A cyber security incident at bankruptcy service provider Kroll has resulted in the exposure of “non-sensitive” customer data for claimants involved in the FTX and BlockFi cases.
- Both companies confirmed that account passwords, systems, and funds remained safe, but warned customers to be on the lookout for phishing scams.