When it comes to cryptocurrency, there are often high ceilings as well as low floors. A hacker attempted to steal crypto transactions from users.
This news follows a 35M DeFi hack on the Vee Finance Protocol in recent months. Our team at NewsBTC also reported that fraud and crypto hacks were on the rise for an unprecedented year around mid-year.
This week’s BadgerDAO compromise is one of DeFi’s biggest yet.
BadgerDAO Hack What Do We Know?
The protocol cited “reports of unauthorized withdrawals of user funds” on late Wednesday, and proceeded to pause all smart contracts on the protocol:
Badger received complaints about unauthorized withdrawals from user funds.
Badger engineers are investigating this and have paused all smart contracts to stop further withdrawals.
We are still investigating and will provide more information as soon we can.
— ₿adgerDAO 🦡 (@BadgerDAO) December 2, 2021
Following the hack, the BadgerDAO Token(BADGER) saw a 20% decline. This platform is designed to generate bitcoin yield through different vaults.
PeckShield, a blockchain auditing company reported that Thursday’s loss was in excess of $120M. It covered over two BTC as well as over 150 Ethereum and went all the way to the end. A variety of assets, however, were compromised in the hack. Numerous wallets were hacked, with one transaction resulting in a loss of $5M. PeckShield also published a list of transactions involving the hack funds. in the early Thursday hours stated that it “look(s) like good progress has been made. Fingers crossed!”
All things being equal, the BADGER currency has held its ground despite this week's hack.Source: Badger-USD at TradingView.com | Source: BADGER-USD on TradingView.com
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Backlash & The Bigger Picture
This news received a less than stellar reception from the community. Users shared their grief on Twitter about losing funds. Some people suggested that the hack might have been a rug because it appeared to be a front-end attack.
Further speculation was made about a possible loss of funds by CeFi platform Celsius Network. However, it seems that the Celsius notes are only rumors. We will see if Celsius releases any further details or makes an announcement about the rumors.
Furthermore, many community members noted that the protocol “pausing” the smart contracts – as sensical as it is to protect user funds – goes against the principles of decentralization.
DeFi should be encouraged by the continued growth of insurance programs. Our team at NewsBTC wishes only the best for the BadgerDAO protocol and it’s users.
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Featured image taken from TradingView.com Charts, and Pexels This content was not written by or associated with the mentioned parties. This article is not meant to provide financial advice.