This Easter Sunday will not have been peaceful for everyone: the Beanstalk platform has just been hacked and the damage is estimated at some 76 million dollars. However, the losses for the protocol could turn out to be much greater.
Beanstalk crypto thus joins the sad list of decentralized finance (DeFi) protocols on Ethereum that have fallen victim to a hacker. What happened ? Will the Bean coin be able to recover?
Crypto Beanstalk Hacked for $76 Million
The Beanstalk project is a protocol for stablecoins, cryptos to overcome the problem of volatility. The decentralized finance project aims to enable crypto lending by exploiting the Ethereum blockchain for its operation.
Early this Sunday, a hacker managed to exploit a loophole to recover funds when applying for a flash loan. According to the data collected by Etherscan, the attacker(s) took the following steps during their attack:
- They applied for a flash loan (near instant loan) from Aave coin
- They managed to make a withdrawal of funds from the cash on the Beanstalk protocol
- Via the Uniswap exchange, the hackers exchanged DAI, USDC and USDT coins for Ethereum
The result of the operation is a theft of 24,830 Ethereum (ETH) worth approximately $76 million at the current price of ETH/USD.
In order to cover their tracks, the hackers managed to use Ethereum Tornado Flash to hide the transaction history of the accounts. This action suggests that they have potentially stolen many more tokens than announced, and that some thefts have not yet been observed.
Beanstalk Attack Followed and Commented Live on Twitter
On his Twitter account, Peckshield published in detail the elements concerning the Beanstalk hack. This is the first time that Peckshield, a company specializing in the security of blockchain protocols, has publicly commented on an attack of this type on a social network.
Hi, @BeanstalkFarmsyou may want to take a look:
— PeckShield Inc. (@peckshield) April 17, 2022
Despite hundreds of retweets, the company that manages the Beanstalk protocol has not yet responded or issued an official statement regarding the attack.
Immediate Drop in Token Bean Crypto Price
Immediately after the announcement of the attack, the price of the Bean coin (the native token of the Beanstalk protocol) collapsed. The price of the coin fell almost 100% before timidly starting to recover:
The Bean is a stable coin whose value is theoretically supposed to be pegged to 1 US dollar. We will have to remain attentive in the next few hours and days to find out if the price of the Bean will be able to rebound towards $1, or if the token will die as a result of this hack by reaching $0.
What is Beanstalk Crypto?
The Beanstalk project is a decentralized application that serves as a cryptocurrency credit platform. Its native token is the Bean, a stablecoin whose value is pegged to that of one US dollar.
The Bean was to serve as a collateral token for loans made on the platform. It is an ERC-20 stablecoin, which leverages the Ethereum blockchain to secure its transactions.
The network and its whitepaper are built around 3 different elements that are interconnected: a decentralized price system, a decentralized governance system with voting rights, and easy access to crypto loans.
Until now, the network made it possible to be remunerated in two different ways:
- With interest by providing liquidity for loans
- In running costs for those involved in verifying transactions
The future of Beanstalk is currently uncertain. The most speculators could try to buy BEAN/USD at a low price by betting on a rebound after the platform’s official announcements. With the current price weakness, the profits could be several hundred percent.
On the other hand, the more cautious should choose to stay away or sell the BEANs they have in their portfolio. Indeed, we are not yet certain that the losses are only 76 million. In addition, it is for the moment impossible to say if the project will succeed in recovering from this piracy as long as the founders will not have spoken.
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Beanstalk: A Hacker Steals $76 Million (Potentially Much More) – Edubourse.com
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