HomeNEWSAnkr protocol endures $5 million exploitation

Ankr protocol endures $5 million exploitation

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The DeFi sector has suffered yet another attack as hackers exploit BNB chain-based protocol Ankr. At the early hours of today around 12:35 am UTC, PeckSheild confirmed the multi-million dollar attack kn Ankr.

After that, the Ankr team on Twitter confirmed the attack. The protocol explained that the hacker exploited its eBNB token, though the firm didn’t reveal the total loss. However, the protocol divulged that it’s working with cryptocurrency exchanges to trace and stop the trading of the stolen assets. Though, BNB Chain said it has blacklisted the hacker’s address.

Insights into the hack on Ankr

Meanwhile, a host of blockchain analytical firms gave insights into the attack. One of the firms, Lookonchain said the hacker used solutions like Tornando Cash, Uniswap and other bridges to swap and conceal the traces of the stolen funds. The firm claimed that the hacker stole USD coin worth about $5 million.

Additionally, Binance confirmed the attack in a separate tweet today. The world’s largest cryptocurrency exchange by trading volume said it’ll engage firms and security agencies to make findings on the exploit. More so, Binance establish that the attack didn’t affect its user’s funds.

There are pointers that the hack on Ankr manifested as a result of a vulnerability in smart contract code and stolen private keys. Reports hold that the lapses might have surfaced from the technical upgrade the protocol carried out some hours before the hack.

Vulnerability of DeFi

The vulnerability of DeFi protocols has come into play in recent times due to the increasing attacks on them, causing them to surrender users’ funds. Since the start of the year, DeFi protocols have lost more than $3 billion to hackers.

However, there are reports that most of the hacks of DeFi emanated due to the vulnerability of cross-bridge hacks. The growing attack and doubts about DeFi protocols further deepen with the recent attack on Ankr.

The increasing attack on DeFi platforms has been greeted with a cooperative defence from the entire cryptocurrency sector. Firms and relevant stakeholders in the industry now work together to track hackers and reclaim stolen funds.

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