BonqDAO Stolen $120 Million By Price Manipulation AllianceBlock (ALBT) Token

Key Points:

• The BonqDAO and AllianceBlock protocols were attacked by smart contracts, causing quite a bit of damage.
• PeckShield estimated the hack’s damage to be around $120 million.
• AllianceBlock asserts that the incident is completely isolated from the BonqDAO troves and that no smart contracts were compromised.
• The team is also working on a solution that will allow users to withdraw all remaining collateral without repaying the BEUR.

In the early morning of February 2, due to a vulnerability in the BonqDAO smart contract, the BonqDAO encryption protocol and AllianceBlock suffered a loss of $88 million in an attack.

Hackers removed about 114 million WALBT (AllianceBlock’s wrapped native token) and 98 million BEUR tokens from BonqDAO (Traves) coffers. The vault is controlled by the user and used for minting euro-pegged payment tokens.

The technical reason for this exploit is still unknown. To date, the hackers have sold around $1.2 million in tokens but have yet to be able to convert the total amount into stablecoins or ETH due to a lack of liquidity.

AllianceBlock stated on Twitter that the incident has nothing to do with the BonqDAO vault and does not violate smart contracts. Both groups are working on eliminating liquidity to reduce the risk of hackers converting stolen tokens into other assets and have halted all exchange trading.

AllianceBlock has also paused bridging on the AllianceBlock Bridge until the issue is resolved. The next step is to take a snapshot of the users before the attack, then develop a solution for all affected users from the time of the snapshot. This includes generating new ALBT tokens and sending them to the addresses in the snapshot.

PeckShield estimated the hack damage to be around $120 million, including $108 million (98 million BEUR) and $11 million (113.8 million wALBT).

After the security incident, the prices of BEUR and ALBT dropped significantly in a short period of time: WALBT dropped by >50% and BEUR dropped by 34%

At around 6 am this morning, BonqDAO released an announcement: “Bonq protocol was exposed to an oracle hack, where exploiter increased the ALBT price and minted large amounts of BEUR. The BEUR was then swapped for other tokens on Uniswap. Then, the price was decreased to almost zero, which triggered the liquidation of ALBT troves.”

At the same time, they also announced that other vaults were not affected. The Bonq protocol has been suspended. The team is also working on a solution allowing users to withdraw all remaining collateral without repaying BEUR. This will be in Central Europe Time and will be released tomorrow morning.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Foxy

Coincu News