DeFi exchange stole $ 120 million

DeFi exchange stole $ 120 million

Recently, a hacker withdrew funds from several crypto wallets connected to the BadgerDAO decentralized financial platform and the attack stole various tokens valued at around $ 120. Million dollars.

According to The Verge, members of Badger informed users while the investigation was still in progress that the problem originated from hackers injecting a malicious script into their website’s user interface. For any user who interacts with the site while the script is active, the script intercepts Web3 transactions and inserts a request to transfer the victim’s token to the address chosen by the attacker.

Meanwhile, PeckShield pointed to a transfer of 896 Bitcoins to an attacker’s wallet worth over 50. there Million dollars. According to the research team, the malicious code surfaced as early as November 10th when attackers ran malicious scripts at random times to avoid detection.

Decentralized Financial Systems (DeFi) are based on blockchain technology to enable cryptocurrency holders to perform more typical financial operations, such as: B. Earning interest by lending. BadgerDAO promises users that they can “be carefree as they know you never have to give up your private crypto keys, you can withdraw them anytime, and our strategists are working 24/7 to get your property up and running”. Its protocol enables Bitcoin holders to “bridge” their cryptocurrency via tokens with the Ethereum platform and to use DeFi options.

After learning of the unauthorized transfers, Badger stopped all smart contracts, essentially freezing the platform, and advising users to decline all transactions to the attacker’s address.

The company said it had “withheld data from Chainalysis forensics experts to uncover the full extent of the incident and that authorities in both the US and Canada have been notified.” Badger fully cooperates with external investigations and conducts its own investigations. “

Badger investigates, among other things, how an attacker apparently accessed Cloudflare using an API key that should have been protected with two-factor authentication (MFA). While the attack did not reveal any specific vulnerabilities in the blockchain technology itself, it attempted to exploit the older “Web 2.0” technology that most users use to transact.

Multi-factor authentication protects accounts from multiple phishing schemes or mass credential stuffing attacks. However, experts keep warning of targeted phishing attacks that can circumvent this, while toolkits to automate the process have been available for many years.