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A small-scale decentralized autonomous organization (DAO), BonqDAO, had a significant smart contract hack that resulted in the theft of approximately $120 million from its protocol.
The Bonq protocol’s Twitter account, BonqDAO, informed its followers on February 1 that an Oracle hack had revealed its code, allowing an attacker to control the AllianceBlock (ALBT) token’s price.
In a subsequent tweet, BonqDAO claimed it has suspended the service and is focusing on a recovery strategy. It stated:
“Other troves remain unaffected. Bonq protocol has been paused. We’re working on a solution that will allow users to withdraw all remaining collateral without repaying BEUR in the troves. It will be released tomorrow morning CET.”
ALBT token issuer, AllianceBlock also tweets that an exploiter gained exposure to 113.8 million ALBT tokens.
The loss from the BonqDAO attack was estimated to be around $120 million by blockchain security company PeckShield, consisting of $108 million from 98.65 million BEUR tokens and $11 million from 113.8 million wrapped-ALBT (wALBT) tokens.
As per the multi-chain portfolio tracker DeBank, the exploit affected numerous transactions, the largest of which was $82.19 million at 6:32 p.m. UTC on February 1. The Polygon network hosted the majority of the large-scale transactions.
According to PeckShield, the exploiter was able to alter the updatePrice code of the oracle within one of BonqDAO’s smart contracts, which allowed them to control the cost of the wALBT token, resulting in the exploitation.
One of the first to identify the issue was on-chain security watcher “Spreek,” who tweeted that the exploiter afterwards sold more BEUR and ALBT tokens for USDC ($500,000) and 144 ETH (about $236,000).
Crypto Attacks Slow Down in 2023
On the contrary, according to data just released by blockchain security firm PerkShield, only $8.8 million in losses from crypto attacks were reported in January, a remarkable decrease of 93% year over year. Crypto vulnerabilities and scams totaled just around $62.2 million in December, according to security-focused ranking platform CertiK.
The post BonqDAO Exploited for $120M: Details appeared first on Blockchain, Crypto and Stock News.
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