Skip to content
Herald Sheets

Herald Sheets

Live Cryptocurrency News

Follow Herald Sheets on Twitter, Facebook, Telegram, Please Read Our Disclaimer

  • Homepage
  • Start Trading
  • Guide
  • Crypto News
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Ripple (XRP)
    • Dogecoin (DOGE)
    • Cardano (ADA)
    • Litecoin (LTC)
  • Analysis
  • Blockchain
  • Mining
  • Reviews
    • Brokers
    • Exchanges
  • Regulation
  • Press Release
  • About Us
    • Contact Us
    • Privacy Policy
    • Submit Press Release
  • Disclaimer
  • Cryptocurrency
  • News

bZx Loses Over $8 Million of User Deposits In Another Major Hack

Solomon Odunayo September 14, 2020 1 min read
KuCoin Hack Update: $152.7M in Ethereum, $4.4M in XRP and Other Assets Bring Total Loss to Nearly $200M

bZx, a decentralized finance lending protocol, has been hit with another major hack, losing over $8 million in user deposits in the process, a sum that is equivalent to 30% of its Total Value Locked. This came a few months after bZx lost over $954,000 in two similar attacks.

A couple of hours ago, the DeFi lending protocol shared an update on Twitter after a huge drop in TVL was noticed by its developers:


trade now

“At 3:28 AM EST we began investigating a drop in the protocol TVL. By 6:18 AM EST we confirmed that a duplication incident had occurred with several of the iTokens.

“Lending and unlending was temporarily paused. The duplication method has been patched out of the iToken contract code, and the protocol has resumed normal functioning.”

Although lending and unlending were halted and iToken contract code was patched up, the hacker had already leveraged the bug to cart away with relatively $8 million in user deposits.

In a follow-up report, bZx stated that the duplication bug that opened the door for the said exploit was patched up as soon as it was audited by the two prominent security firms in the crypto ecosystem, Peckshield and Certik.

Also, for clarification, bZx pointed out that “No funds are currently at risk. Those funds outlined have been debited against our insurance fund. Nobody currently using the protocol is in danger.”

> No funds are currently at risk. <

Those funds outlined have been debited against our insurance fund. Nobody currently using the protocol is in danger.

— bZx – Fulcrum & Torque (Now on Polygon!) (@bZxHQ) September 13, 2020

Reactions of Some Industry Experts

According to Lead Engineer at Bitcoin.com, Marc Thelan, the team of developers behind the decentralized finance (DeFi) lending protocol were likely too slow to deal with the problem.

In a series of tweets, he noted:

“Last night I found an exploit in BRZX. I noticed that a user were capable of duplicating “i tokens”. There was 20+ million $ at risk. I informed the team telling them to stop the protocol and explained the exploit to them. At this point none of the founders were up..

“I tried the exploit out. I created a loan using USDC (100 USD). From this I retrieved iUSDC. I then sent this to myself practically duplicating the funds. I then created a claim for 200 USD.

“After a while the admin I was talking to told me that he finally got a hold of the team and was passing the info I was giving them through to them. At this point the attacker I noticed had drained substantial amounts of Dai and USDC.

“BzX did an emergency stop and paused the contracts. I am currently awaiting my bounty as it has to go through “independent board” who will decide if it will be granted to me. Since BRZX already made a post mortem report on this I figured it share here what actually happened.

“I am highly convinced that the complete pool could have been drained if the attacker had a bit more time.

The reason I am tweeting this is not to slander BZX but far too often teams do not pay out their bounties even though in this scenario the amount at risk was very substantial. (Will update here when I hear more about my bounty claim).”

Despite the display of vulnerability, some still came in defense of bZx. According to the founder of Aave Protocol, Stani Kulechov, “bZx incident recently showed that it’s easier forked than done. They had multiple audits, formal verification and took substantial time before coming back to main-net and yet all the diligence does not guarantee safety. Something that every DeFi user should understand.”

Join us on Twitter

Join us on Telegram

Join us on Facebook

Trade Now

HeraldSheets.com produces top quality content for crypto companies. We provide brand exposure for hundreds of companies. All of our clients appreciate our services. If you have any questions you may contact us easily with Herald Sheets Facebook Messenger App. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors and the views expressed in them do not reflect the views of this website. Herald Sheets is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.

Continue Reading

Previous: CZ Binance Suggests What Could Serve As a Sure Solution to Ethereum High Gas Fees
Next: Cardano Foundation Warns the Community of a False Link Going Round

Related Stories

Crypto Safety And Transparency At The Forefront Of Australian Senator’s Proposed Bill
3 min read
  • Blockchain
  • CBDC (Central Bank Digital Currency)
  • Crypto Trading
  • Cryptocurrency
  • Decentralized Cryptocurrency Exchange (DEX)
  • News
  • Regulation
  • Stablecoin

Crypto Safety And Transparency At The Forefront Of Australian Senator’s Proposed Bill

March 30, 2023
DeFiLlama is Facing an Internal Disagreement on the Matter of Forking the Blockchain Project
3 min read
  • Blockchain
  • Cryptocurrency
  • DeFi (Decentralized Finance)
  • News

DeFiLlama is Facing an Internal Disagreement on the Matter of Forking the Blockchain Project

March 30, 2023
Goldman Sachs Names Bitcoin the Best Performing Asset as Per Year-to-Date Evaluation
3 min read
  • Bitcoin (BTC)
  • Cryptocurrency
  • News
  • On-chain Data & Analysis
  • Price Analysis

Goldman Sachs Names Bitcoin the Best Performing Asset as Per Year-to-Date Evaluation

March 30, 2023

Top 10 Crypto

Name Price24H (%)
bitcoin
Bitcoin (BTC)
$28,296.00
-0.51%
ethereum
Ethereum (ETH)
$1,791.07
-0.96%
tether
Tether (USDT)
$1.00
-0.13%
binancecoin
BNB (BNB)
$315.77
-0.26%
usd-coin
USD Coin (USDC)
$1.00
0.02%
ripple
XRP (XRP)
$0.53
-1.76%
cardano
Cardano (ADA)
$0.376455
-2.05%
dogecoin
Dogecoin (DOGE)
$0.074956
-1.32%
binance-usd
Binance USD (BUSD)
$1.00
-0.18%
polkadot
Polkadot (DOT)
$6.12
-1.34%

Recent Posts

  • Crypto Safety And Transparency At The Forefront Of Australian Senator’s Proposed Bill
  • DeFiLlama is Facing an Internal Disagreement on the Matter of Forking the Blockchain Project
  • Goldman Sachs Names Bitcoin the Best Performing Asset as Per Year-to-Date Evaluation
  • Cardano’s Rising TVL Value Fails to Pump ADA Price
  • Congressional Hearing On Cryptocurrency Policy Puts SEC Chief Gary Gensler On the Hot Seat
  • DWF Labs Invests $40 Million In Fetch.ai To Deploy Decentralized Machine Learning
  • Hydra Ventures DAO Fund Raises $10M In New Funding Round
  • FTX’s $45M Bankruptcy Asset Sale Delays Embed Divestment Process
  • MetaMask Warns Users Of Fake Airdrop Rumors
  • Microsoft is Testing a Built-in Crypto Wallet for its Edge Web Browser
  • YouTube Influencers to Face Class Action Lawsuit for Promoting FTX
  • Singaporean Women Outperforms Men In Crypto Gains – Survey
  • Modification Of Crypto Banking Rules Possible If Market Reacts Strongly – Basel Committee Chair
  • Irene Zhao’s Crypto Social App Announces Fresh Fund Raise Of $4.5 Million 
  • What is a Network Effect and How Does It Work?

Categories

You may have missed

Crypto Safety And Transparency At The Forefront Of Australian Senator’s Proposed Bill
3 min read
  • Blockchain
  • CBDC (Central Bank Digital Currency)
  • Crypto Trading
  • Cryptocurrency
  • Decentralized Cryptocurrency Exchange (DEX)
  • News
  • Regulation
  • Stablecoin

Crypto Safety And Transparency At The Forefront Of Australian Senator’s Proposed Bill

March 30, 2023
DeFiLlama is Facing an Internal Disagreement on the Matter of Forking the Blockchain Project
3 min read
  • Blockchain
  • Cryptocurrency
  • DeFi (Decentralized Finance)
  • News

DeFiLlama is Facing an Internal Disagreement on the Matter of Forking the Blockchain Project

March 30, 2023
Goldman Sachs Names Bitcoin the Best Performing Asset as Per Year-to-Date Evaluation
3 min read
  • Bitcoin (BTC)
  • Cryptocurrency
  • News
  • On-chain Data & Analysis
  • Price Analysis

Goldman Sachs Names Bitcoin the Best Performing Asset as Per Year-to-Date Evaluation

March 30, 2023
Cardano’s Rising TVL Value Fails to Pump ADA Price
3 min read
  • Altcoins
  • Blockchain
  • Cardano (ADA)
  • Cryptocurrency
  • DeFi (Decentralized Finance)
  • News
  • On-chain Data & Analysis
  • Price Analysis

Cardano’s Rising TVL Value Fails to Pump ADA Price

March 29, 2023
Copyright © All rights reserved. | DarkNews by AF themes.
  • RelevantRelevant(REL)$0.825.35%
  • TadpoleTadpole(TAD)$7.32-1.74%
  • SEENSEEN(SEEN)$2.05-2.27%
  • EvedoEvedo(EVED)$0.082301-0.80%
  • MarginswapMarginswap(MFI)$0.184213-2.11%
  • SakeTokenSakeToken(SAKE)$0.0127135.28%
  • WTF TokenWTF Token(WTF)$0.0113500.17%
  • BNSD FinanceBNSD Finance(BNSD)$0.005461-5.83%
  • RobotinaRobotina(ROX)$0.00266138.50%
  • CageCage(C4G3)$0.005010-3.67%