Crypto-asset security is an ever-present concern, and its fragility has been highlighted once again. BonqDao, a financial services provider, has been subject to a crippling cyberattack as its oracle was infiltrated by an insidious hacker. The exploit enabled the criminal to manipulate the price of AllianceBlock tokens, resulting in losses amounting to $120 million for BonqDao.
The blockchain security firm PeckShield divulged on Thursday that the exploiter took advantage of an unnoticeable alteration to update price function within one of BonqDao’s smart contracts and rapidly blew up the value of AllianceBlock tokens.
Unfortunately, this is not the first incident; it joins a growing list of breaches over the past year; nefarious hackers, fraudsters, and scammers have stolen around $4 billion worth of digital assets. To make matters worse, many of these attacks were facilitated by lapses in industry standards that should have ensured proper safeguards against such events.
How many Assets have been Lost to the Hacker?
A PeckShield analysis has uncovered that a staggering 113.8 and 98.65 million worth of BEUR and wALBT tokens were lost to hackers after the project failed to secure itself properly. This is a shocking revelation. This episode serves as a reminder for projects to take necessary precautions before launching and implement “fool-proof” strategies to avoid such losses in the future.
How BonqDAO is Coping with this Cyber Attack?
In a stunning move, BonqDAO is pulling out of liquidity and halting all exchange trading, with the intention of compensating any users adversely affected by the cyber attack. This is an unprecedented move in the blockchain sphere, but one which reflects the company’s commitment to its customers: indeed, some have suggested that ALBT tokens may even be minted as part of the compensation process.