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Flawed code put hacker $8M more richer.

It’s kinda some bad “karma” about hacking on bZx, with the third attack on the lending protocol making criminals $8M more richer, in February two other attacks also made some of this criminals steal more than $925,000 from bZx smart contracts.

The hacker exploited a flawed code which made them duplicate their assets and made possible to the hacker mint:

  • 219,200 LINK, tokens (worth $2.6M)

  • 4,503 ETH ($1.6M)

  • 1,756,351 USDT ($1.7)

  • 1,412.048 USDC ($1.4M)

  • 667,989 DAI ($680,000)

  • That’s a total sum of $8.1M in losses.

The decentralized lending protocol with the hacking didn’t lost only funds in the incident but also the trust of users who locked value in the protocol, who after the attack the total value locked reduced extremely from more than $21M to near $6M, check on Defipulse, meaning that besides the attack users also take down some funds from the protocol in about $7M.

The DeFi project is doomed and may lose customers which won’t handle this constant attacks, the bZx team made a statement saying that funds from customers aren’t lost are safe with the firm to compensate the losses with their insurance firm, but no one like a smart contract with problems and no audit could solve it right now because bugs may be a lot more not detectable right now and to have it more secure the smart contracts must be evaluated in shut down mode.

Well, let’s see what the team will do in order to gain trust one more time from their investors and willing to put more assets in the lending protocol… I believe that will be very hard to convince them!

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Find also the article on my blog.

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