Hackers stole $55 million from the bZx protocol team
The bZx DeFi protocol was hacked again: the attackers managed to steal $55 million from the project team. Previously, the developers reported the theft of funds three times, but the amounts were less impressive.
According to the latest tweets from the bZx team, the private key governing the deployment of the project on the Polygon blockchain and Binance Smart Chain has been compromised. The developers also clarified that the smart contracts of the protocol were not affected and promised to share the details of what happened as new information becomes available.
Audit firm SlowMist noted that the total damage was $55 million, and the funds were transferred to seven different cryptocurrency wallets controlled by hackers. Below is a tweet in which company representatives attached a screenshot with the addresses to which the attacker transferred the stolen funds.
#bZx private key compromised, over $55 million dollars stolen so far. We’ll continue to update as more information is discovered. @RektHQ @ChainNewscom @bZxHQ https://t.co/SM6WWDt06J pic.twitter.com/39S05IiBFr— SlowMist (@SlowMist_Team) November 5, 2021
The developers noted that about 25% of the lost amount as their personal funds stored in a wallet hacked by a hacker. As a precaution, the bZx team decided to temporarily disable the user interface within the Binance Smart Chain and Polygon blockchains. The operation of the protocol on the Ethereum network will not be affected.
As a precaution we have temporarily disabled the UI on BSC and Polygon while we investigate events from earlier today. The Ethereum App is unaffected and continuing to function normally. We will continue to provide ongoing updates and we will be releasing a post mortem shortly.— bZx - Fulcrum & Torque (on ETH/BSC/Polygon) (@bZxHQ) November 5, 2021
Recall that in February last year, the attacker managed to withdraw 1,193 ETH from the protocol (about $350,000 at the exchange rate at that time), which was almost 2% of the total bZx assets. The developers themselves took part in the ETHDenver hackathon at that time, so the cracker took them by surprise. Two days after the first incident, the platform was attacked again, and the damage doubled, amounting to 2,388 ETH (more than $630,000 at the exchange rate at that time).
The last hack happened in September this year when an attacker withdrew $8 million. However, according to the developers, they soon returned the stolen funds.
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