Hacker Exploits BonqDAO in $120 Million AllinaceBlock Heist

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  • Bad actors hacked BonqDAO to steal tokens worth nearly $120 million.
  • Dumped tokens caused ALBT and BEUR to drop by over 50% and 34%, respectively.
  • AllianceBlock promises to compensate users while reassuring smart contract safety.

The blockchain security firm PeckShield has reported an exploit on the decentralized autonomous organization, BonqDAO. An estimated $120 million was stolen in WALBT and BEUR tokens, leading to a drop in their values of over 50% and 34%, respectively.

According to PeckShield’s analysis, a hacker breached the platform’s security and manipulated its price oracle to increase the price of AllinceBlock (WALBT) ahead of massive withdrawals. As revealed in some of the transactions noted by PeckShield, with the manipulated WALBT, the hacker could mint over 100 million BEUR before initiating massive withdrawals in both tokens.

The price of BEUR at the time of the breach was $1.1, implying that the 98 million BEUR tokens stolen were worth over $108 million. Similarly, at $0.1 and 113.8 million, WALBT amounted to $11 million. Hence, the hacker stole approximately $120 million altogether from BonqDAO in the heist.

Still, in the exploit process, the hacker could swap minted BEUR with other tokens on Uniswap. PeckShield noted that up to 33 troves were involved in the swap, all of which became liquidated afterward.

Last year, hackers, scammers, and fraudsters stole almost $4 billion from the crypto industry. This latest breach extends the unwanted trend of protocol breaches that led to significant losses in 2022. It cast dark shadows on the sustainability of the sector, despite the several innovations introduced.

AllianceBlock acknowledged the incident in an announcement via its Twitter account. While it referenced the stolen tokens and affected troves, the platform reassured users that none of its smart contracts were either breached or compromised.

The team behind AllianceBlock also said that they have started removing liquidity to halt all exchange trading. Subsequently, they will initiate a process that will compensate affected users with new ALBT tokens via an airdrop. The team promised to keep the community updated as events developed, urging them to avoid speculation.

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