HomeUpdate$120 million was looted from the DeFi protocol by hackers

$120 million was looted from the DeFi protocol by hackers


Last Updated on 06/12/2021 by Riya

By breaking into the decentralized finance (DeFi) system BadgerDAO, a threat actor, or maybe a group of cybercriminals, acquired $120.3 million in cryptocurrency. PeckShield, a blockchain security service, identified the attack and hunted down the lost cash. The DAO claimed that currently they are investigating the attack since PeckShield went live.

For the short period, smart contracts have been put on hold in order to avoid further thefts. However, when the limitation will be lifted is unknown. BadgerDAO has enlisted the Chainalysis, as well as US and Canadian governments, to examine the matter.

However, it is unclear yet if the victims will be compensated or not. According to PeckShield’s research, the cybercriminals grabbed about $117 million in Bitcoin, with the remaining funds kept in interest-bearing Bitcoin, a type of tokenized Bitcoin, and Ether, the Ethereum blockchain’s indigenous token.

According to the document, some individuals compromised $5 million in Bitcoin, whereas others lost more than $50 million.BadgerDAO is a DAO that permits Bitcoin to be leveraged as security in DeFi apps. In other words, Bitcoin can be leveraged to obtain financing.

The DAO is a decentralized and automated entity that employs blockchain-based contracts to computerize decision-making and regulations. BadgerDAO is based on the Ethereum network and delivers vaults for customers to keep their Bitcoin in order to receive market-based rewards.

The DeFi attack by BadgerDAO is the second such attack of 2021. The $120.3 million merely contributes to the year’s extremely huge sum.From January to July 2021, DeFi breaches contributed to 76 percent of all breaches, according to AtlasVPN, a virtual private network (VPN) network. In 2020, $129 million was lost in DeFi attacks, according to the site, but by July 2021, the figure had more than doubled to $361 million.

Riya is a technology enthusiast and an avid researcher. She writes about consumer tech, hacking, and technology consumer issues at TheDigitalHacker.
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