The latest decentralized finance project to be hit by hackers is Qubit Finance, as reports of large losses trickle in. Details are slim at the time of writing, but it looks like a true story.
Qubit Finance hacked for $80 million in latest DeFi exploit
In the early hours of January 28, the team posted an announcement on their Twitter feed stating that a malicious actor exploited the protocol to mint unlimited tokens on the Binance Smart Chain-based platform.
“The protocol was exploited by the wallet address. The hacker minted unlimited xETH to borrow on BSC. The report stated that the team is currently working with security and network partners on the next steps”, the report stated.
Blockchain security and smart contract auditing firm PeckShield confirmed the mining, stating:
It seems the QBridge of @QubitFin is hacked to mint huge amount of xETH collateral and drain the pool funds about $80M. Please note we audited the Qubit lending, not the QBridge! More to come…
— PeckShield Inc. (@peckshield) January 27, 2022
The latest update from the DeFi protocol team says they continue to monitor miners and monitor affected assets and have contacted hackers to offer the maximum bounty.
RugDoc, a feed that monitors DeFi mining, said that the third or fourth-time BSC-based PancakeBunny protocols had been hacked. According to BSCscan, the address that mines this protocol has 206,809 BNB, or $79.7 million in Binance Coin, inside.
CertiK Security reported that the hacker called a staking function in the QBridge contract but did not execute the staking. Ethereum QBridge recorded the deposit event and generated $qXETH for the hacker on BSC.
“The QBridge treats the Deposit event as an event of depositing #ETH because the `deposit` and `depositETH` methods in the #QBridge contract emit the same event.”
This process was repeated many times to increase the proceeds to nearly $80 million, making this hack the seventh-largest hack according to DeFiYield’s Rekt database.
Qubit Finance is a lending protocol optimized to provide lending as a utility to the Binance Smart Chain. Its native QBT token has dropped 31% in the past few hours and is currently trading at an all-time low of $0.004, down 99.2% from its September all-time high of $0.58.
Last month, the Grim Finance protocol lost $30 million in a single miner a week after Brinc Finance was mined for $1.1 million.
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