$55M Stolen As DeFi Protocol bZx Is Compromised Again

Multi blockchain-based decentralized finance (DeFi) protocol bZx (CRYPTO: BZRX) has been compromised with significant funds siphoned out of its lending ecosystem.

What Happened: The private key held by the bZx development team was compromised resulting in $55 million of cryptocurrencies being stolen, according to a Friday tweet by blockchain cybersecurity firm SlowMist. The project's team told Decrypt the estimate of "$55m hasn't been verified internally."

See Also: HOW TO INVEST IN DEFI

The bZx team said 25% of the stolen funds are personal losses from the team wallet and only the Polygon (CRYPTO: MATIC) and Binance Coin (CRYPTO: BNB) wallets were compromised with the Ethereum (CRYPTO: ETH)-based DeFi service being unaffected.

BZx was previously compromised two times: in February 2020 the protocol lost $366,000 worth of Ether by one of the first instances of a flash loan exploit. Then, in September 2020 a second attack resulted in a loss of 30% of the funds locked in the protocol, worth $8 million.

BZRX Price Action: As of press time, BZRX is trading at $0.3804 after seeing its price plummet by about 14.90% over the last 24 hours according to CoinMarketCap.

Image: Courtesy bZx

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