BonqDAO stole $120 million with an oracle hack

An oracle hack assisted attackers manipulate the rate of AllianceBlock (ALBT) tokens, which value all-around $120 million, in accordance to the report. peckshield.

On February one, the BonqDAO and AllianceBlock protocols have been exploited by wise contract mining, leading to significant harm.

The Bonq protocol was exposed to an oracle hack, wherever the exploiter raised the rate of ALBT and minted substantial quantities of BEUR. The BEUR was then traded for other tokens on Uniswap. Then, the rate was lowered to just about zero which triggered the liquidation of the ALBT money.

— BonqDAO (@BonqDAO) February 1, 2023

One analyses independent from PeckShield hacking damages estimated at somewhere around $120 million, such as $108 million (98 million BEUR) and $eleven million (113.eight million wALBT).

The estimated reduction of @BonqDAO hack is ~$120 million: 98 million $EUR (it was priced at $one.one -> $108 million) and 113.eight million $WALBT (it was priced -> $.one to $eleven million). Now the $EUR rate decreased by >30% e $WALBT decreased by >50%! https://t.co/z8XyBLgRxr

— PeckShield Inc. (@peckshield) February 1, 2023

PeckShield explained that the miner modified Oracle’s updatePrice perform into a BonqDAO wise contract, consequently manipulating the wALBT rate and stealing loot, such as BEUR.

The @BonqDAO is exploited and its rate oracle is manipulated to increase the #WALBT rate. Here is the tx hack illustration: https://t.co/YPxXMr2nkf pic.twitter.com/XrzExHY6m1

— PeckShield Inc. (@peckshield) February 1, 2023

The hacker then traded 500,000 BEUR for USDC on Uniswap prior to burning all 113.eight million wALBT to unlock ALBT.

Spreek – a single of the initial to learn the hack – declare the miner “dumped” the other BEURs and ALBTs to get 500,000 USDC and 144 ETH (well worth $230,000).

After the safety incident, the charges of BEUR and ALBT fell appreciably in a brief time period of time.

The plaintiff then walks away with the unlawful earnings with 113.eight million #WALBT and 98M #BEUR (valued > $ten million). Some of these tokens are then dumped, resulting in a key drop! #WALBT decreased by >50% e #BEUR decreased by 34% pic.twitter.com/HEYxrcaB5Y

— PeckShield Inc. (@peckshield) February 1, 2023

AllianceBlock – the issuer of ALBT – also confirmed that the miner has taken management of 113.eight million ALBT.

ANNOUNCEMENT

There was a current incident involving quite a few ALBT Troves on Bonq, with the attacker gaining accessibility to all-around 110 million ALBT.

The incident is isolated from these Troves. None of our wise contracts have been hacked or compromised. pic.twitter.com/puntkIPK3G

—AllianceBlock (@allianceblock) February 1, 2023

AllianceBlock says the incident is absolutely isolated from BonqDAO’s findings and that no wise contracts have been compromised. Both teams promptly eliminated all liquidity on Bonq to quit the hacker from converting and scattering the stolen tokens.

Additionally, AllianceBlock will also suspend resource bridging right up until the predicament is resolved. AllianceBlock’s announcement also stated it will mint new ALBT tokens to compensate victims of hacking.

BonqDAO is a decentralized autonomous organization (DAO) aims to give self-regulatory fiscal solutions to men and women and organizations without the need of relinquishing ownership of assets. Meanwhile, AllianceBlock is a decentralized infrastructure platform that connects regular fiscal institutions with Web3 applications.

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