BadgerDAO is Latest DeFi Project to Lose Millions to Hackers

Oluwapelumi Adejumo
Updated: Dec 2, 2021, 19:46 GMT+00:00

BadgerDAO has confirmed that its platform suffered a hack that led to the loss of user’s funds.

BadgerDAO is Latest DeFi Project to Lose Millions to Hackers

With the DeFi space still smarting from the recent hack of MonoX, another project in the space has suffered another attack which has led to the loss of over $100 million to hackers.

Attacker targeted the platform’s User Interface

BadgerDAO, a decentralized autonomous organization, earlier today confirmed that it suffered a major hack which led to the loss of hundreds of millions by its users. According to the DAO, the hacker was able to drain funds from the wallets of its users by capitalizing on a malicious contract on the front end of the platform’s user interface.

Per available information, the attack began on Wednesday evening when a number of users began receiving requests to grant permissions to a contract on the platform. Unknowingly to them, this request was emanating from the hacker who later used it to gain unlawful access to their funds.

In its statement confirming the attack, the BadgerDAO team revealed that its users had reported unauthorized withdrawals of their funds on the protocol. The DAO continued that it had temporarily stopped all smart contracts from processing withdrawals as it investigates the origin of this attack.

BadgerDAO did not release any information on the extent of the loss or the number of affected users. However, a post mortem from PeckShield revealed the lists of assets that were affected and the possible amount that was siphoned by the hacker.

According to data provided by the blockchain security and data analytics company, the platform lost around $120 million to the malicious player with one user losing as much as 900 BTCs which translates to roughly $50 million.

Reactions Trail BadgerDAO loss

A number of users have begun reacting to the loss of funds with some reacting angrily to the team’s decision to halt withdrawal.

One user of the platform, @Trader_recluse revealed that he had over $2 million on the platform which is his entire life savings but he can’t gain access to it now because the project has placed a hold on withdrawals. Another user said that he had his son’s university tuition saved on the platform but that is also now lost. On the other hand, one user offered to help the BadgerDAO team improve its security.

As of press time, BADGER’s price is down by more than 20% within the last 24 hours.

About the Author

Oluwapelumi is a firm believer in the transformative power power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas about how the industry could play a pivotal role in the emerging financial system. When he is not writing, he is looking to meet new people and trying out new things.

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