April 26, 2024

Crime

Hackers steal $180 mn in crypto from Beanstalk Farms

IANS | April 19, 2022 10:56 AM

Hackers have stolen nearly $180 million in cryptocurrency from Beanstalk Farms, a decentralised finance (De-Fi) project.

Beanstalk operates a system where participants earn rewards by contributing funds to a central funding pool that is used to balance the value of one token at close to $1, reports The Verge.

"Beanstalk suffered an exploit. The Beanstalk Farms team is investigating the attack and will make an announcement to the community as soon as possible, " the company admitted in a tweet.

The hackers exploited Beanstalk's majority vote governance system, a core feature of many DeFi protocols.

The attack was first spotted by blockchain analytics company PeckShield.

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".

The attacker then instantly repaid the flash loan, netting an $80 million profit, the report said.

In January this year, hackers stole crypto tokens worth $120 million from Blockchain-based decentralised finance (DeFi) platform BadgerDAO. Several crypto wallets were drained before the platform could stop the cyber attack.

In December last year, cyber criminals stole cryptocurrency worth $80 million from Qubit Finance, a decentralised finance (DeFi) platform.

The US this week blamed North Korean hacker group Lazarus for stealing $625 million in cryptocurrency from the Ronin Network, owned by developer group Sky Mavis.

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