Crypto Heist! $120 mn stolen by hackers in cryptocurrency from BadgerDAO

Around $120 million in cryptocurrency has been stolen by hackers from DeFi platform BadgerDAO.
By HT TECH
| Updated on Dec 04 2021, 07:33 AM IST
The malicious code first emerged on November 10 and the attackers executed it at seemingly random intervals to escape detection. (Representative Image)
The malicious code first emerged on November 10 and the attackers executed it at seemingly random intervals to escape detection. (Representative Image) (Reuters)

Online fraudsters just managed to pull off a $120 mn cryprocurrency heist! The loss was of course for the investors! Hackers have stolen around $120 million from multiple cryptocurrency wallets connected to the decentralised finance platform BadgerDAO. According to Peckshield, the blockchain security and data analytics company, which is working with the online finance platform Badger to investigate the crypto heist, hackers have stolen various tokens worth of $120 million in the cyber attack. For now, the platform has paused all the online contracts to ensure that there are no further withdrawals till the investigation is going on. Badger is investigating how the attacker allegedly successfully connected to Cloudflare using an API key that should have been protected by two-factor authentication.

PeckShield cites one move that yanked 896 Bitcoin valued more than $50 million into the attacker's pockets. The malicious code first emerged on November 10, according to the team, and the attackers executed it at seemingly random intervals to escape detection. While the investigation is still ongoing, Badger team members have cautioned users that they believe the crisis was caused by hackers who are installing a malicious script into their website's user interface. When visitors interacted with the site while the script was active, it monitored Web3 transactions and included a request to transfer the victim's tokens to the attacker's designated location.

"Badger has retained data forensics experts Chainalysis to explore the full scale of the incident & authorities in both the US & Canada have been informed & Badger is cooperating fully with external investigations as well as proceeding with its own," BadgerDAO said via Tweet.

How does the DeFi system work?

Decentralized finance or DeFi systems use blockchain technology to enable crypto owners to undertake more traditional financial operations such as earning interest through lending. Users may "rest easy knowing you never have to give over the private keys for your crypto, you can withdraw whenever you want, and our strategists are working day and night to put your assets to work," BadgerDAO reported. Its protocol enables Bitcoin owners to "bridge" their cryptocurrency over to the Ethereum platform via its token, allowing them to take advantage of DeFi opportunities that they would not have had otherwise.

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First Published Date: 04 Dec, 07:20 AM IST
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