BonqDAO Suffers $120 Million Exploit Following Oracle Hack

February 2, 2023

MCP News Free

BonqDAO Suffers $120 Million Exploit Following Oracle Hack

BonqDAO is the latest victim of a crypto hack after suffering a loss of $120 million following the recent Oracle hack.

The hack was announced on Twitter by the protocol on February 1, informing its followers that the price of AllianceBlock token has been manipulated and the protocol has been exposed to the Oracle hack.

https://twitter.com/bonqdao/status/1620908233761378304?s=46&t=9oP0KLOpI2V5xI6jhNDyKw

According to PeckShield, a blockchain security analysis, an estimation of $120 million was lost due to the hack and comprises $108 million from 98.65 million BEUR tokens and $11 million from 113.8 million wrapped-ALBT (wALBT) tokens.

The hack took effect over transactions, however, the largest of it was $82.19 million at 6:32 pm UTC time on Feb. 1, according to multichain portfolio tracker DeBank.

Signals for Bitcoin, ETH, and other trending altcoins on Binance, Kucoin, and Bybit exchanges are benefits you’ll get when you register for our ParadiseFamilyVIP.

Use PRO20% for your special 20% discount today as the promo expires soon. Click here to see reviews from our clients.

How did it Happen?

According to PeckShield, the hackers were able to manipulate the updateprice function of the oracle in one BonqDAO smart contract, in other words, the hackers were able to manipulate the price of wALBT.

The @BonqDAO is exploited and its price oracle is manipulated to increase the #WALBT price. Here is the example hack tx: https://t.co/YPxXMr2nkf pic.twitter.com/XrzExHY6m1
— PeckShield Inc. (@peckshield) February 1, 2023

The above incident however led to the hackers being able to exploit BEUR and wALBT. The cyberpunks then swapped nearly $500,000 in BEUR for Circle’s stablecoin USDC using Uniswap before burning all 113.8 million wALBT to unlock ALBT.

In a short period, the price of ALBT and BEUR plunged considerably, PeckShield and other security analysts noted.

In a follow-up tx, the actor further manipulates the #WALBT price and liquidates a bunch of (33) troves: https://t.co/BmZHSrAVTh pic.twitter.com/nqHPfh5Q6o
— PeckShield Inc. (@peckshield) February 1, 2023

Following this event, BonqDAO announced on Twitter that it is pausing the protocol while working on recovery.

“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,” it said.

Join our telegram channels where we share our FREE updates and analysis on coins like BTC, ETH, and other trending altcoins. We also share our FREE secret insights, and also FREE market updates.