DeFi protocol bZx has been hacked for upwards of $55 million.
The team has not released details concerning how the attack was executed.
A post-mortem is expected in the coming days.
Share this article
bZx, a widely-used DeFi protocol, has lost $55 million to an unknown hacker who it claims gained illegitimate access to its private key. It is still not clear how the hackers carried out the attack.
Hacker Drains Funds After Compromising Private Key
bZx, a multi-chain decentralized finance (DeFi) project, has reported that a private key securing its smart contracts on Polygon and Binance Smart Chain (BSC) was compromised.
“It appears private key controlling the Polygon and BSC deployments was compromised, leading to loss of funds,” the team confirmed in a Twitter post.
After the private key compromise, an unknown hacker successfully drained $55 million worth of assets from its liquidity pools, security firm Slow Mist estimates.
Roughly 25% of this amount was lost from the wallet, the team claimed, and the remaining belonged to its users. To prevent further losses, the team has asked its users to revoke permissions they have given to the affected contracts.
The team added that its Ethereum smart contract was not affected by the hack. The reason for this was that the private key to bZx’s Ethereum deployment was secured by a multi-party contract and governed through a DAO.
The team is yet to explain how hackers stole the private key controlling its Polygon and BSC contracts. It is expected to present a post-mortem report in the coming days.
It is noteworthy that bZx was attacked last year as well. Later, the team claimed to have recovered the funds at the time. Incidents like the bZx hack are not an uncommon occurrence for projects building on Binance Smart Chain and Polygon; both EVM-based blockchains have registered several attacks over the last year.
Today’s bZx attack adds to the long list of on-chain hacks that have previously taken place on Polygon and BSC. The biggest among them was Poly Network, a cross-chain DeFi project similar to bZx, that suffered a $611 million hack.
This news was brought to you by ANKR, our preferred DeFi Partner.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
BSC Protocol Uranium Finance Hacked for $50 Million
Yet another DeFi project on the Binance Smart Chain has fallen to hackers. This time, Uranium Finance was drained of more than $50 million. Uranium Finance Joins List of Hacked…
EasyFi Hacked for Over $80 Million in MetaMask Attack
EasyFi Network, a Layer-2 DeFi project on Polygon Network, reported that an unknown hacker stole tens of millions of dollars worth of funds from its official wallet. Admin MetaMask Wallet…
How Bumper’s Price Protection Helps DeFi Users Earn Yield on Their A…
Is it possible to build a DeFi protocol that counters crypto’s inherent volatility while also letting holders enjoy the upshot of their assets? Bumper Finance is a DeFi price-protection protocol that aims…
Another Polygon Yield Farm Crashes to Zero After Exploit
PolyYeld Finance was exploited today, leading to a price collapse of its native token. Attacker Exploits PolyYeld Vulnerability PolyYeld Finance’s native token has collapsed to zero after attackers took advantage…