HomeNEWSBonq suffers $120 million exploitation

Bonq suffers $120 million exploitation


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Popular lending platform, Bonq has suffered an exploitation on its network. The platform confirmed the exploitation in its latest Twitter post. According to Bonq, the exploiter gained unauthorized access to about 110 million $ALBT, increases the $ALBT price and consequently minted large amounts of $BEUR.

Further, the Bonq attacker then decided to swap the $BEUR, thereby decreasing the price to almost zero. This development, according to the lending protocol has triggered the liquidation of $ALBT troves. Notably, popular blockchain security firm, Peckshield also confirmed the exploitation, stressing that the estimated loss by Bonq through the hack amounts to $120 million.

According to Peckshield, the exploiter siphoned 98 million $BEUR equivalent to $108 million and 113.8M $WALBT equivalent to $11 million. This thus led to a 30% decline in $BEUR price and a 50%$WALBT price. It is noteworthy that Peckshield has continued to track the activities of the exploiter since the news of the exploitation dominated the airspace. Just recently, the security firm issued an update that the hacker currently holds 89.2M $ALBT, 711 $ETH ($1.2M), and 534k $DAI. It alleged that the hacker cross-chained 113.8M $ALBT and 534,481 $USDC from Polygon to Ethereum through Multichain. Further, Peckshield claimed the hacker has already dumped 24.6 million $ALBT in batches of 1 million $ALBT each, and swapped 534.5k $USDC for 534.5k $DAI.

Bonq halts operations on its network

Meanwhile, Bonq insisted that the exploitation has not affected other troves. But, the lending protocol has paused every operations on its network. It, however, assured its users of its commitment to collaborate with security agencies to track the exploiter and unravel the circumstances behind the exploitation. Further, the platform plans to devise a solution capable of allowing users to withdraw all remaining collateral without repaying BEUR in the troves. It promised to release the modalities as soon as possible.

More so, the issuer of $ABLT, AllianceBlock also briefed its community about the exploitation. The protocol said the exploitation is isolated to $ABLT troves alone. It insisted that none of its smart contracts were breached or compromised in the hack. Occasioned by this development, the $ABLT issuer promised to work with Bonq team to remove the liquidity. More so, the platform resolved to halt all exchange trading on its network. Just recently, it paused all activities on its Bridge.

Through its collaboration with Bonq, AllianceBlock aims to conduct a snapshot of the affected troves before the attack. Further, it promised to mint new $ALBT tokens and thus compensate affected users with an airdrop. Notably, the $ALBT issuer promised to update its community as things unfold.

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Dare Ibitoye
Dare Ibitoye
Over the years, Dare has been a committed reporter in the field of cryptocurrencies. He is also interested in researching about the innovative projects within the blockchain space. During his spare time, Dare loves to listen to music and read about technological trends in the contemporary world

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