Attackers withdraw R1.2 billion from Ethereum DeFi Beanstalk project in flash lending exploit – Reuters News in France and abroad

  • Cyber ​​attackers stole $80 million (R1.2 billion) from the stable protocol Beanstalk in a massive flash loan scam on Sunday.
  • As a result, the credit-focused decentralized finance protocol lost its total locked value of $182 million.
  • “We lost all of our assets deposited in the silo, which was substantial,” the founders said.
  • For more stories, go to www.BusinessInsider.co.za.

Cyber ​​attackers targeted Ethereum-based stablecoin project Beanstalk Farms and took away around $80 million (about R1.2 billion) in tokens in one of the biggest flash lending exploits ever.

As a result, the credit-focused decentralized finance protocol lost its total locked value of $182 million, which signifies the overall value of deposited crypto assets. Its native token, BEAN, which is believed to be pegged to the dollar, has fallen over 75% in the past day.

“We don’t know the identities of those involved,” the founders said on the Beanstalk Discord channel. “Like all other Beanstalk investors, we lost all of our assets deposited in the silo, which was substantial. »

Meanwhile, the attackers have already moved all of the $80 million in tokens they swiped into Tornado Cash to hide the funds, according to blockchain research firm PeckShield and Bloomberg.

The security flaw stems from an infiltration of the protocol’s governance proposal system, which opened the door to the attack. The exploiter requested the protocol to send funds to Ukraine as a donation, but the proposal came with a malicious endorsement, leading to a leak of funds.

This case was not a technical hack per se, but an exploitation of a design flaw in the governance procedure, which a spokesperson for the project addressed on Monday, Corner Telegraph reported.

“It is unfortunate that the same governance procedure that put the bean in a position to succeed ultimately caused its downfall,” the spokesperson said.

In decentralized finance, so-called flash loans are granted when users borrow massive sums of stablecoins without any collateral – which is not possible in traditional loans.

The lending and borrowing process is supposed to happen instantly in a single transaction on the blockchain and is not uncommon among arbitrage traders.

However, by manipulating the protocol or smart contract code, an attacker can exploit vulnerabilities in the transaction and drain funds.

Beanstalk miners donated $250,000 USDC stablecoin to Ukraine.

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Attackers withdraw R1.2 billion from Ethereum DeFi Beanstalk project in flash lending exploit – Reuters News in France and abroad


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