Qubit Finance, a DeFi protocol built on the Binance Smart Chain, was exploited for $80 million by hackers on Friday.
What Happened: According to an update from Qubit Finance on Twitter, the attackers exploited a bug in the protocol’s code to mint an unlimited amount of xETH, or Ethereum (CRYPTO: ETH) bridged through Qubit.
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The protocol was exploited by;
— Qubit Finance (@QubitFin) January 28, 2022
0xd01ae1a708614948b2b5e0b7ab5be6afa01325c7
The hacker minted unlimited xETH to borrow on BSC.
The team is currently working with security and network partners on next steps.
We will share further updates when available.
By tricking the protocol into showing they had made a deposit, without actually deploying any funds, the hackers managed to drain $80 million worth of user funds after converting it into Binance Coin (CRYPTO: BNB).
3. The hacker repeated steps 1 & 2 to gain a large amount of $qXETH. Lastly, the hacker converted all the assets to $BNB and the profit is around $80M.
— CertiK Security Leaderboard (@CertiKCommunity) January 28, 2022
QBridge (Eth):
0x99309d2e7265528dc7c3067004cc4a90d37b7cc3
One of the tx:https://t.co/uM74gQf7Mv
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This is the seventh-largest DeFi exploitation, in terms of the amount of funds stolen by attackers, according to data from De.Fi.
The Qubit Finance team requested the attackers return the funds in exchange for a “maximum bounty” by communicating through a transaction on the Binance Smart Chain blockchain.
[Our message to the exploiter]
— Qubit Finance (@QubitFin) January 28, 2022
The team is glad to have a conversation with you.https://t.co/4SxtuD6pQY pic.twitter.com/V9bICKvWda
Qubit Finance’s native crypto token QBT (CRYPTO: QBT) is down over 30% since news of the protocol being hacked broke earlier today. Data from CoinMarketCap indicates that the token is down 99.25% from its all-time high of $0.5809 on Sept. 2, 2021.
Photo: Courtesy of Don Hankins on Flickr