The BonqDAO Protocol loses $120 million to an oracle breach – CryptoNewsTo

The BonqDAO Protocol loses $120 million to an oracle breach

The crypto community faces another grim situation as BonqDAO announced a $120 million breach. A recent oracle breach put the protocol at risk, and the attacker changed the price of ALBT.

In addition, the attacker minted huge amounts of BEUR, which were later used to swap for other tokens. The transactions took place on Uniswap, after which the price went almost zero. This sequence activated the liquidation of ALBT.

However, other troves did not experience any effect. Nonetheless, the Bonq Protocol was paused as the network worked on a solution. Users were unable to withdraw their collateral without repaying BEUR after the attack. 

Both AllianceBlock and BonqDAO released a string of tweets about the attack. According to AllianceBlock, over 110 million ALBT tokens were involved in the breach. The incident remained isolated to the troves, leaving other smart contracts untouched.

All the connected partners are currently removing liquidity. That is why exchange trading has been halted.Here is how AllianceBlock explained the upcoming steps:

  1. The network will take a screenshot before the token
  2. It will mint new ALBT tokens.
  3. Every affected user will receive an airdrop containing the new tokens.

Users were notified that conducting any trades after the announcement will not be considered part of the compensation scheme. AllianceBlock has requested users stay connected and not spread any speculation.

No community manager or team member will reach the users. The only official modes of communication are AllianceBlock’s Twitter and Telegram channels. The development was also covered by PeckShield Inc., where users found the explanation behind the attack.

According to the platform, the exploiter managed to reach the update Price function of the oracle via one of the smart contracts. It allowed the attacker to compromise the price of wALBT. This started the exploitation, which continued with the swapping of BEUR worth 500K dollars.

While the BonqDAO and AllianceBlock communities are on edge, users are satisfied with how the networks handle the situation. Every involved party has been active and constantly updated users about the situation.

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