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QuBit Finance Loses $80M in Latest DeFi Hack

cryptoknowmics.com 28 January 2022 08:00, UTC
Reading time: ~2 m

In a fresh round of DeFi exploit, Binance Smart Chain-based Qubit Finance was hacked for over $80 million on Friday morning, as confirmed by the team in a Twitter post. According to BSCscan, the address connected to the hack has over 206,809 BNB worth over $80 million. Furthermore, the address also owns over 127,000 qXETH, out of which 199 ETH was transferred to the Ethereum mainnet. . Decentralized protocol Qubit Finance allows users to supply their crypto assets to the protocol in return for loan against this collateral for a fixed fee. Its cross-chain feature QBridge enables users to collateralize their assets on other networks without moving assets from one chain to another. PeckShield, which audited Qubit’s smart contracts, reported that QBridge was hacked to mint a “huge amount of xETH collateral” that was then used to drain the entire amount of BNB held on QBridge. https://twitter.com/peckshield/status/1486841239450255362 The attacker apparently used a deposit function in the QBridge contract and illicitly minted 77,162 qXETH, an asset that represents ether bridged via Qubit. It appears that the attackers tricked the protocol to show that they had deposited funds without making an actual deposit. These steps were repeated several times, and the attacker then converted all the assets to BNB, according to CertiK security. https://twitter.com/CertiKCommunity/status/1486910619827818502

Seventh-largest DeFi Hack

Qubit developers continue to monitor the situation at the time of writing. Furthermore, the team has even contacted the hacker to recover the assets by offering “maximum bounty”. The latest QuBit exploit is the seventh-largest attack on a DeFi protocol, according to data from analytics tool DeFi Yield. Following the hack, the DeFi protocol’s native QBT token has been down 26% in the past 24 hours.

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