Self-sovereign financial services provider Boncadao lost $120 million after a hacker exploited its oracle to manipulate the price of AllianceBlock tokens.
In a Thursday tweet, blockchain security firm PeckShield revealed that the oracle of BonqDAO was manipulated and used to inflate the price of AllianceBlock tokens. The exploiter managed to do this by altering the updateprice function of an oracle in one of BonqDAO’s smart contracts.
According to PeckShield analysis, the project lost approximately $120 million as a result of the hack, including 98.65 million BEUR tokens worth approximately $108 million and 113.8 million Wrapped-ALBT (wALBT) tokens worth approximately $11 million.
In another tweet, the official Twitter account of BonqDAO Confirmed hack, stating that an exploiter “increased the ALBT price and mined a large amount of BEUR. The BEUR was then swapped for other tokens on Uniswap. Then, the price was dropped to almost zero, leaving ALBT Trove liquidation has begun.” He added:
“Other troves remain unaffected. The BONK protocol has been halted. We are working on a solution that will allow users to withdraw all remaining collateral in troves without having to pay BEUR. It will be released tomorrow morning CET.”
In an announcement, the team behind AllianceBlock said that they are in the process of removing Liquidity and halting all exchange trading. He also revealed his plan to compensate affected users, which would involve creating new ALBT tokens.
BonqDAO is a decentralized autonomous organization, an entity with no central leadership, that aims to provide interest-free self-sovereign financial services to individuals and businesses without giving up ownership of their assets.
AllianceBlock is a decentralized crypto infrastructure platform that connects fintech providers and traditional finance institutions with decentralized finance applications.
The BonqDAO hack comes as crypto continues with exploits and manipulations. As mentioned, the industry about $4 billion in damage The value of digital assets to hacks, frauds, scams and rug pulling in the last year.
Among various forms of illegal activities, hackers accounted for the bulk majority of crypto losses in 2022. More specifically, the hackers stole over $3. 7 billion, or over 95% of all crypto lost in the year. Fraud, scams and rug pull comprised only 4.4% of the total losses.
“In 2022, DeFi remains the main target of successful exploits at 80.5%, compared to CeFi at 19.5% of total losses,” Immunefi said in a report. ,
