The Zabu token price is going sideways after a $ 3.2 million attack on the Avalanche blockchain

Zabu Finance, a DeFi application on the Avalanche blockchain, is said to have been mined for crypto tokens worth $ 3.2 million. Removing a large number of tokens eventually reduced the value of the Zabu token to 0.

Zabu finance announced mean by reaching out to Avalanche and popular Avalanche-hosted decentralized exchanges like Pangolin and Trader Joe for help:

“Zabu Team Wallet has not sold a single Zabu. We’re being broken down, probably from the spore pool. We are investigating the exploit. Need help Pangolin, Trader Joe, Avalanche. “

Based on further investigation, Zabu found that the attacker stole assets from a pool of spore tokens which, according to blockchain explorer, 402.9 WETH, 23,157 WAVAX, 21,501 PNG, 106,848 AVE, 361,267 USDT and 23,958.93 JOE, all up to $ 3.2 million at the time of mining.

Zabu confirmed that an attacker was able to interact with blockchain contracts and “successfully withdraw 4.5 billion Zabu tokens from Zabu Farm Contracts and sell them all to Pangolin LP and Trader Joe LP of Zabu for stealing about $ 600,000”. Immediately after mining, Zabu and a DeFi engine hosted by Avalanche, Yield Yak, advised investors to withdraw their holdings or risk losing their assets to attackers.

As part of repair, Zabu intends to return tokens to investors based on their balance before and after the hack:

“The snapshot process can take some time because we have to calculate the balance of Zabu owners, farm stakers (for Zabu-related pools) and alarm generators (for Zabu-related pools). We may need help from Markr, DeBank, and Avalanche. “

Zabu also burned the remaining 93.12 million Zabu tokens worth $ 360,000.

Avalanche and Zabu have yet to respond to Cointelegraph’s request for comment.

Related: DeFi project pressures xToken second largest mining since May

On August 30, another DeFi project, xToken, reported a cyber attack that resulted in losses of nearly $ 4.5 million. As reported by Cointelegraph, the hacker went through a complicated token swap process that involved a quick loan from the decentralized exchange dYdX of 25,000 ETH (about $ 81 million) to carry out the attack.

xToken then pulled the plug on the xSNX product, citing “significant surface area for vulnerabilities”.