Decentralized Lending protocol bZx hacked twice in a matter of days

Decentralized Lending protocol bZx hacked twice in a matter of days

Decentralized lending protocol bZx suffered two successful hacks in a matter of days that caused a loss of over 950,000. With this latest development, Decentralized finance (Defi)  has taken a huge hit as the attacker was reported to have used multiple Defi protocols in his attempt.

The first bZx hack

The protocol was first compromised on February 14 when the team was at the ETHDenver industry event. Reportedly, the second attack took place on February 18.

In the first attack, the attacker used multiple Defi protocols to swap large amounts of Eth and wrapped Bitcoin (wBTC) – an asset that tracks the price of Bitcoin from the Ethereum blockchain – to manipulate the prices of the assets. In short, the attacker used 5,500 ETH to buy 112 wBTC then swapped them for 6,671 ETH, earning a profit of 1,193 ETH (around 320,000 USD).

Cryptopolitan has covered the first attack, which can be read here.

The second bZx hack

The nature of the second attack is still unclear, but a message by the operations lead Kyle Kistner suggested that the attack was made through oracle manipulation. Oracles are centralized components that provide external data to applications on the blockchain.

It was estimated that the attack caused a loss of nearly 2,400 ETH. At the current trading price, this sum is worth nearly 640,000 US dollars. Kistner claims that the team can neutralize the hack and prevent money loss as they did in the previous attack. He also promised that the whole project would shift to oracles based on the Chainlink protocol, which would make the system more secure.

Featured image by pixabay.

Ahmad Asghar

Ahmad Asghar

A first generation gamer at heart and tech buff by nature, have been involved in the tech sector for better part of a decade. With that insight and knowledge, he now covers blockchain, cryptocurrency and everything fintech so others can make sense of the industry.

Related News

Hot Stories

Bitcoin, Ethereum, ApeCoin, and Decentraland MANA Daily Price Analyses – 17 August Roundup
How to bridge to Dogechain?
Cardano price analysis: ADA falls flat to decline below $0.55 support
Bitcoin price analysis: Consolidation tests bulls as BTC remains below $24k
Dogecoin price analysis: DOGE swiftly drops 10 percent, higher local low set?

Follow Us

Industry News

How to bridge to Dogechain?
Why learn blockchain, Defi, and crypto technology at a top university?
Best Twitter thread of the day - August 17th
Top tweets of the day - August 17th
New York Court rules in favor of Celsius Network to sell mined Bitcoin. More sell pressure?