Beanstalk protocol victim of $78 million hack

Beanstalk is robbed of $78 million

Beanstalk (BEAN), a decentralized finance (DeFi) protocol built on the Ethereum blockchain (ETH), was robbed of the equivalent of around $78 million in a hack earlier today.

According to a report by the company specializing in blockchain security PeckShieldthe hack was made possible following a flash loan allowing the hacker to buy governance tokens in order to issue the BIP18 contractan action that requires more than 67% of votes in normal times. It is this contract which contained the pernicious code and which would have allowed the hacker to withdraw the funds concerned.

Once the assets were stolen, the hacker was able to repay your flash loan and transform all of the remaining assets into Ethers, which represented approximately $78 million at the time of the facts. Note that at the same time, he made a $250,000 donation to Ukraine support organization.

Fig. 1: Diagram of the Beanstalk protocol hack

The hacker then forwarded the stolen $78 million in Ethers on the Tornado Cash Mixer in order to cover his tracks, a fairly classic method during hacks which unfortunately take place in the middle of decentralized finance.

According to several organizations specializing in blockchain security, the total loss of the protocol could amount to approximately $182 million. As the hack took place today, we can expect more information in the days to come.

Note that following the hack, the BEAN token, which is a stablecoin, suddenly deviated from its normal value of 1 dollar.

BEAN courses

Fig. 2: BEAN token price

Publiusone of the Beanstalk maintainers, said on the protocol’s Discord server that users would probably never see their funds again :

“Honestly, I don’t know what to say. We are screwed up. This project does not receive any financial support, so it is very unlikely that there will be any bailout. »

This hack is the 10th largest in the history of decentralized financenarrowly exceeding the hack at $77.7 million from Ascendex last December.

👉 Related: US Treasury Accuses North Korea of ​​Massive Ronin Hack

Sources: PeckShieldRect

Source images – Fig. 1: PeckShieldFig. 2: CoinGecko

About the Author : Maximilien Prue

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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
All articles by Maximilien Prué.

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