Someone stole $120 million in crypto by hacking a DeFi website

The image is by Alex Castro.

Someone drained funds from multiple cryptocurrencies wallets on Wednesday night. According to the security and data analytic firm, which is working with Badger to investigate the attack, the stolen token is worth about 120 million dollars.

While the investigation is still ongoing, members of the Badger team have told users that they believe the issue came from a malicious script in the website. When the script was active, it would intercept Web3 transactions and insert a request to transfer the victim's token to the attacker's chosen address.

The transparent nature of the transactions makes it possible to see what happened when the attackers pounced. One transfer worth more than $50 million was made to the attacker. The malicious code appeared as early as November 10th, according to the team.

Decentralized finance systems rely on technology to let users earn interest on their loans. Users can rest easy knowing that they never have to give up the private keys for theircryptocurrencies, and that our strategists are working day and night to put their assets to work. The protocol allows people who have a token forBitcoin to use it to bridge their currency over to the platform of their choice.

The pause on smart contracts is in order to prevent further withdrawals. As soon as possible, Badger will share more updates.
December 2, 2021.

After becoming aware of the unauthorized transfers, Badger stopped all smart contracts, froze its platform, and advised users to decline all transactions to the attackers addresses.

The company said it has retained data forensics experts Chainalysis to explore the full scale of the incident, as well as authorities in both the US and Canada, who have been informed.

Badger is looking into how the attacker was able to access Cloudflare via an API key that should have been protected by two-factor authentication. The attack was able to exploit the older web 2.0 technology that most users need to use to perform transactions. Multi-factor authentication systems protect our accounts from many attacks. Vulnerable people have been warned about targeted attacks that can be bypassed, while toolkits to automate the process have been available for years. The FBI suggested changes or training to make it harder for criminals to pull off attacks like the one in 2019.

One of the most security minded teams is in DeFi.

It can be difficult to get two-factor authentication right in financial applications. The Poly Network was hijacked in August of 2016 and the first DAO was hit in the year of 2016 are both examples of how security can be expanded.

The situation was summed up by a person within Badger's Discord, who said, "All [the] blockchain / smart contract audits in the world, and people lose 120m to a Cloudflare API leak by a sloppy team where a dude passes a new approval to his contract A member of the team said that they would have some procedures proposed after this.

What funds can be recovered and how those affected will be made whole is not known. For anyone living in the world of cryptocurrencies, it may be on them to learn how approvals, signing, and transactions work and keep an eye on them. Even though Badger refers to itself as one of the most security minded teams in Defi, millions of dollars in holdings can disappear in an instant.

:noupscale is a file on

We can't run a secure messaging app on the web because it's too secure.
Let's use jаvascript to secure $100m.
Matthew Green is on December 2, 2021.