Cryptocurrency worth $120 million stolen from BonqDAO protocol

Hackers hacked into the BonqDAO crypto protocol and stole assets worth $120 million. The attacker attacked the price oracle of the project, which allowed him to increase the rate of the AllianceBlock (ALBT) token, issue a large number of Bonq Euro (BEUR) tokens and then exchange them for other cryptocurrencies on the Uniswap platform, reports RBC Crypto.

BonqDAO is a decentralized crypto lending protocol based on the Polygon blockchain. According to DeFiLlama, the total asset value locked (TVL) in the protocol was $12.9 million as of Feb. 1 and $201,000 as of Feb. 2.

BEUR is a stablecoin of one of the BonqDAO vaults pegged to the euro rate, and WALBT are “wrapped” native tokens (a copy of an asset in another blockchain) of the AllianceBlock DeFi protocol.

By data cybersecurity company PeckShield, the BonqDAO project lost about $120 million in assets. $108 million of them were in the BEUR cryptocurrency, about $11 million was stolen in WALBT (wALBT) tokens. After the hack, the hacker burned the wALBT tokens to unlock the ALBT coins. According to analysts, he became the second largest owner of the AllianceBlock cryptocurrency.

After the hack, the Bonq Euro exchange rate lost its peg to the euro and dropped to $0.73. According to CoinGecko, at 10:30 Moscow time, the token is trading at $0.84. The ALBT rate fell by 56.7% from $0.106 to $0.047.

The theft of assets from the BonqDAO protocol was the largest this year: the amount stolen was 13 times the total amount of stolen cryptocurrencies in January. In the first month of the year, as a result of 24 hacks, hackers stole digital currencies for a total of $8.8 million.

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