Over $80 million worth of digital assets were stolen from a decentralized financial platform in the latest hack of cryptocurrency trading markets.
Over $80 million worth of digital assets were stolen from a decentralized financial platform in the latest hack of cryptocurrency trading markets. A blockchain extension of Qubit Finance, a DeFi lending company, was exploited by a hacker on Thursday night, according to a statement from the company. The add-on known as X-Bridge allows people to trade tokens between Ethereum and Binance Smart Chain, two of the most popular blockchains.
The attacker raised a total of $185 million in xETH, or Xpolsive Ethereum, by using malicious data to mine Binance Smart Chain tokens that were never deposited in Ethereum, as the code indicates. according to a report by blockchain audit firm CertiK.
Qubit wrote an open letter to the person responsible offering a bounty of up to $250,000 and asking to negotiate the return of lost funds that affect “thousands of real people.” The company has disabled some features of the X-Bridge while it investigates the issue.
Cybersecurity flaws have become pervasive across cryptocurrency trading platforms, leaving investors frustrated and companies suspending services to fix network vulnerabilities. This is a caveat of a system where transactions can only be traced to anonymous serial codes rather than personal identifications. A record $1.3 billion was stolen in DeFi scams and exploits in 2021.
“As we move from an Ethereum-dominated world to a truly multi-chain world, bridges will only grow in importance,” said Connie Lam, Incident Response Manager at CertiK, in a note. “People need to move funds from one blockchain to another, but they need to do so in a way that isn’t vulnerable to hackers.”
Qubit did not immediately respond to a request for comment.
Crypto Coin Holders Vote Treasurer Felon For DeFi Project
(Bloomberg) Investors in decentralized finance project Wonderland have dismissed a criminal who oversaw the project’s cash flow.
Some 87% of Wonderland’s participating tokenholders voted to oust the project’s head of treasury, who goes by the alias Sifu or OxSifu and was outed as failed co-founder Michael Patryn. Canadian crypto exchange QuadrigaCX. Wonderland, which allows people to earn returns on their digital coin holdings, has a cash position of $670.4 million, according to its website.
Wonderland co-founder Danielle Sestagalli asked Patryn to step down on Thursday. The project’s material cash activity was suspended until the outcome of the vote, which lasted two days.
Patryn, who had also gone through Omar Dhanani before legally changing his name twice, spent 18 months in US federal prison and was deported to Canada after pleading guilty to conspiracy to commit credit card fraud and banking in 2005, and burglary, grand larceny and computer fraud two years later.
He later joined Quadriga co-founder Gerald Cotten at the start of the Canadian swap, although the men went their separate ways in early 2016. Patryn has not been charged with any wrongdoing related to the collapse by Quadriga. Quadriga has captivated the crypto world since 2018, when Cotten’s sudden death exposed a massive fraud that caused at least C$169 million ($133 million) in losses to 76,000 investors in Canada and abroad. .
Thanks to the anonymity of those involved in most DeFi crypto projects, Patryn’s identity was kept secret until exposed by an anonymous Twitter user. Sestagalli said he discovered Patryn’s identity a month ago, but had not changed tactics until recently because he believed in giving a second chance.
In a statement posted to Wonderland’s forum on Friday, Sestagalli said that while some users have said Wonderland should now be removed, “that’s the easy way out.” Instead, he suggested hiring professionals to manage the project’s cash flow, conduct regular audits, and issue regular financial reports. Wonderland is also preparing for optional disbandment, he said.
The Wonderland’s Time token has fallen over 65% in the past week, according to crypto tracker CoinMarketCap.