Beanstalk Farms, a decentralized finance (De-Fi) project, was hacked and nearly $180 million in cryptocurrencies was stolen by hackers.
According to a report in The Verge, Beanstalk operates a system in which participants earn rewards by contributing funds to a central financing pool that is used to balance the value of one token close to $1.
The company admitted in a tweet “Beanstalk suffered an exploit. The Beanstalk Farms team is investigating the attack and will make an announcement to the community as soon as possible,”
Beanstalk’s majority vote governance system, which is a core feature of several DeFi protocols, was compromised by the hackers.
PeckShield, a blockchain analytics firm, was the first to notice the attack.
The Beanstalk attacker “used a flash loan obtained through the decentralised protocol Aave to borrow close to $1 billion in cryptocurrency assets and exchanged these for enough beans to gain a 67 per cent voting stake in the project”.
According to the report, the attacker immediately repaid the flash loan, generating a $80 million profit.
Hackers stole crypto tokens worth $120 million from BadgerDAO, a Blockchain-based decentralized finance (DeFi) platform, in January of this year. Before the platform could stop the cyberattack, several crypto wallets were drained.
Hackers stole $80 million in cryptocurrency from Qubit Finance, a decentralized finance (DeFi) platform, in December of last year.
The United States blamed North Korean hacker group Lazarus this week for stealing $625 million in cryptocurrency from the Ronin Network, owned by developer group Sky Mavis.