What Happened to Polkadot Parachain on Acala Network: $1.2 Billion Loss

Acala Network, one of Polkadot’s (DOT) DeFi (Decentralized Finance) ecosystem, was the victim of a $1.2 billion hack due to a bug in its liquidity pool.

The cryptocurrency ecosystem struggled with serious hacking attacks throughout the month of August. polkadotFrom the DeFi (Decentralized Finance) ecosystem of Acala NetworkIt was hacked on the official Twitter account on August 14. announced. As a result of the investigations on the network, the attack iBTC/AUSD It was understood that there was an error in the liquidity pool.

The important parts of the statement made by the Acala team are as follows:

We determined that the issue was caused by misconfiguration of the iBTC/aUSD liquidity pool. By exploiting this vulnerability, the attackers carried out the uncontrolled printing of a significant amount of aUSD.

After the attack, it functions as a stablecoin on the Acala network. aUSD has lost more than 80% of its value and peg (stability at 1 dollar) is broken. AUSD after the attack all-time low (ATL) decreased to 0.0054. Thanks to this vulnerability, hackers assets worth $1.2 billion transferred to their accounts.

Shortly after the attack, the Acala team announced that they had identified the account to which this “misprinted” $ 1.2 billion was transferred and that their work on the issue was continuing. In the immediate aftermath of the attack, the Acala community quickly DAO (Decentralized autonomous organization) voting of the network temporarily into maintenance mode decided to take it. The Acala team shared a post for white-hat hackers, stating that if they get hold of the aUSD in question, they will transfer them to secure addresses belonging to Acala.

If you are a white hat non-affiliated white hat member of the Acala team, if you acquire aUSD minted as a result of fraud, please transfer these balances to the following addresses:

For the Polkadot network:13YMK2eYoAvStnzReuxBjMrAvPXmmdsURwZvc62PrdXimbNy

For Moonbeam network: 0x7369626cd007000000000000000000000000000000

Same peg corruption issue in past months Terra (Luna) and successive crises were observed in the crypto money ecosystem. Acala’s aUSD, which has suffered equally severe peg degradation, is a similar thing to users’ minds. luna crisis In this case, the aUSDs have not yet been removed from the network and the control has not been lost by the team. For now, it is preventing a serious crisis.

Binance CEO: We’re Following the Issue

Binance CEO CZ about the attack a post by sharing that the accounts of the attackers are monitored by their parties, as well as the aUSD at the center of the attack. Not listed on Binance stated.

Acala Network is currently at risk. It looks like there was a bug in the iBTC/AUSD pool and the attacker wallet is now over a billion $USD holding. We are watching. (AUSD is not listed on Binance).

ACA token since hacking was discovered experienced a decrease of around 15% and at the time of writing from $0.271 traded in the markets.

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