BlocksInform
Self-overeign financial services provider bonqdao has been exploited by a hack oracle leading to $110 million in crypto protocol theft.
During the exploit, the attacker managed to manipulate the price of chips wrapped in allianceblock (walbt) and erased with 100 million walbt of a value of more than 10 million dollars.
What Happened?
An analysis by blockchain security firm PeckShield revealed that the exploiter changed the updateOracle price feature in one of the BonqDAO intelligent contracts. It allowed the price of walbt tokens to be manipulated.
With the increase in the price of walnut, the operator was able to hit more than 100 million beur chips with a value of more than 100 million dollars. Beur is the key to the bonqdao protocol.
In subsequent transactions, the operator traded $500,000 beur chip value for usdc on uniswap and further manipulated the walbt price. This resulted in the liquidation of a heap of 33 ALBT barters.
At the end of the feat, the pirate left with 113.8 million wALBT and 98 million BEUR chips. This resulted in a 51% decrease in the walbt symbolic value, while beur lost 34% of its value.
While announcing the attack, BonqDAO disclosed that other troves were unaffected. The protocol was suspended, and its operators were actively working on a solution to allow users to remove their remaining collateral without replacing the butter in the barters.
AllianceBlock to Airdrop Affected Users
AllianceBlock, on the other hand, told its users that the incident was isolated to just the troves and affected none of its smart contracts. The decentralised infrastructure platform revealed that ALBT exchanges on all exchanges had been interrupted, and that it was eliminating liquidity.
The AllianceBlock and Bonq teams, including all the connected partners, are withdrawing cash and putting an end to all foreign exchange transactions. We have shut down all operations on the Allianceblock Bridge in the interim," said the Allianceblock.
Meanwhile, AllianceBlock plans to take snapshots of users’ balances before the exploit, mint new ALBT tokens, and airdrop them to victims.
