Qubit Finance Exploited for $80M

  • The attacker used a deposit option in the QBridge smart contract to create a “huge amount of xETH collateral”, which he used to borrow BNB on the Binance Smart Chain.
  • The Qubit team has contacted the attacker, and offered him the maximum reward it could give if he returns the stolen funds.
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Binance Smart Chain-based decentralized finance (DeFi) protocol Qubit Finance has suffered a major attack, which saw over $80 million worth of crypto leave the platform, Qubit said on Twitter on 28 January.

According to the announcement, hackers were able to access and steal over $80 million from the project by creating “a huge amount of xETH collateral”, which he then used tp borrow Binance Coin (BNB) tokens on BSC. From the linked address we can see he was able to withdraw 206,809 BNB from Qubit’s QBridge protocol. Qubit’s team is currently working with “security and network partners” to follow the hacker, and work on the next steps.

Security firm CertiK has already issued a report on the case, saying the attacker used a deposit option in the QBridge smart contract to mint 77,162 qXETH — an asset representing bridged ETH through Qubit — fooling the protocol he had deposited money when he hadn’t. These actions were carried out multiple times, allowing him to convert all of his fake assets into BNB.

Qubit has sent a statement to its customers, notifying them that the situation is being monitored, and that the team has contacted the attacker and offered the maximum reward as determined by its program for returning the funds. The team has also disabled a few features — such as supply, redeem, borrow, repay, bridge, and bridge redemption — until further notice, though claiming is still available.

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