DeFi protocol Ankrwas hacked due to a bug in its code that allowed unlimited token issuance. hacker 6 quadrillion aBNBc managed to mint tokens, which eventually produced around 5 million to USDC transformed.
DeFi Protocol Ankr Hacked, Over $5 Million Vapors
Calling itself the first service node platform DeFi protocol Ankrwas hacked for millions of dollars due to a bug in its code that allowed unlimited token issuance.
security research firm to PeckShield According to the Ankr contract, the code behind the Ankr contract allowed any user to mint unlimited amounts of the protocol’s reward-bearing stake tokens without any verification.
This allowed the hacker to print six quadrillion aBNBc tokens.
Hacker who minted quadrillions of aBNBc tokens, 20 trillion aBNBc tokens BNB was able to exchange it with and then To Tornado Cash carried it. The hacker then traded BNB tokens for 5 million USDC.
CoinGecko According to the data of the hacker PancakeSwap and ApeSwap The token lost around 99% of its value as aBNBc on its website almost completely drained its liquidity pools.
Ankr tweeted that all staked assets within the protocol are currently safe.
On-chain analyst firm Lookonchain reported that an opportunistic investor was able to take advantage of this vulnerability to convert 10 BNB ($2,885) to 15.5 million BUSD.
The investor did this by leveraging the DeFi lending protocol Helio, which did not have up-to-date pricing on aBNBc after the crash.
The investor is also using aBNBc’s pre-collapse pricing, which is under-traded. from HAY stablecoin He borrowed $16 million and converted it into BUSD.
Since then, the HAY stablecoin has slumped as low as 20 cents and is now trading at a price of $0.77, according to CoinMarketCap.
Binance CEO Changpeng Zhaotweeted that his exchange had frozen $3 million sent to his exchange by hackers.
Possible hacks on Ankr and Hay. Initial analysis is developer private key was hacked, and the hacker updated the smart contract to a more malicious one. Binance paused withdrawals a few hours ago. Also froze about $3m that hackers move to our CEX.
— CZ 🔶 Binance (@cz_binance) December 2, 2022
*Not investment advice.
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