BadgerDAO got robbed – Since its launch there is one of this, everything so far smiled at BadgerDAO’s DeFi protocol. Unfortunately, after a first alert early in the morning of this Thursday, December 2, it does seem to turn out that the decentralized exchange platform has suffered a major attack.
All withdrawals stopped since this morning on BadgerDAO
The project BadgerDAO (BADGER) is a protocol of the decentralized finance (DeFi) oriented in particular towards the rates of return on Bitcoin (BTC). Or more precisely of wrapped bitcoin, since these are tokens obtained on the blockchain Ethereum (ETH), by locking / blocking a bitcoin on the BTC blockchain.
Around 6:30 a.m. on December 2 (Paris time), the BadgerDAO teams have launched an alert on Twitter, to alert their users to a potential disturbing withdrawals on the protocol:
“Badger has received reports of unauthorized withdrawals of user funds. While Badger’s engineers investigate this matter, all smart contracts have been put on hold to prevent further withdrawals. Our investigation is ongoing and we will release further information as soon as possible. “
Vulnerability allows theft of $ 120 million in crypto
As the report including The Block, it seems that BadgerDAO was the victim of exploiting a flaw on the main portal site of the exchange platform.
Transactions would have been intercepted by a pirate from a “API key for Cloudflare that has been compromised” according to a BadgerDAO administrator. The fault would therefore not come no smart contracts of the protocol itself.
Still, large sums of money would have been embezzled. According to the cybersecurity service PeckShield, a user would have lost on his own 900 wrapped bitcoins be close to $ 51 million at the current price.
The total damage would thus amount to more than $ 120.3 million, before BadgerDAO’s teams urgently cut off the possibility of making withdrawals. At the time of writing, the protocol is still paralyzed.
If the hack is officially confirmed, which should only be a matter of hours, the case could seriously damage BadgerDAO’s hitherto impeccable reputation. Likewise, the balance sheet of stolen cryptocurrencies may well grow further. The cryptosphere still remembers the hundreds of millions of dollars in crypto-assets extorted from PancakeBunny in May 2021.
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