AllianceBlock Token Price Manipulated in Oracle Hack – Here’s What Happened

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Self-sovereign financial services company BonqDAO endured $120 million in losses just after a hacker exploited its oracle to manipulate the selling price of AllianceBlock tokens.

In a Thursday tweet, blockchain stability organization PeckShield revealed that BonqDAO’s oracle was manipulated and used to enhance the price tag of AllianceBlock tokens. The exploiter managed to do so by altering the updatePrice purpose of the oracle in a person of BonqDAO’s wise contracts.

As for every the PeckShield investigation, the venture misplaced close to $120 million due to the hack, which involved 98.65 million BEUR tokens, really worth all around $108 million, and 113.8 million wrapped-ALBT (wALBT) tokens, worth all-around $11 million. 

In a different tweet, the formal Twitter account of BonqDAO confirmed the hack, saying that an exploiter “greater the ALBT selling price and minted big amounts of BEUR. The BEUR was then swapped for other tokens on Uniswap. Then, the selling price was lowered to almost zero, which activated the liquidation of ALBT troves.” They added:

“Other troves stay unaffected. Bonq protocol has been paused. We’re functioning on a alternative that will make it possible for consumers to withdraw all remaining collateral without having repaying BEUR in the troves. It will be released tomorrow morning CET.”

In an announcement, the crew behind AllianceBlock explained they are in the approach of getting rid of the liquidity and are halting all exchange trading. They also revealed their ideas for compensating impacted consumers, which would possibly include things like minting new ALBT tokens.

BonqDAO is a decentralized autonomous group, an entity with no central leadership, that aims to provide self-sovereign financial expert services to people today and corporations desire-cost-free without the need of giving up ownership of their belongings.

AllianceBlock is a decentralized crypto infrastructure system that connects fintech vendors and classic finance establishments to decentralized finance apps. 

The BonqDAO hack arrives as crypto remains rife with exploits and manipulations. As reported, the industry lost roughly $4 billion worth of electronic property to hacks, fraud, frauds, and rug pulls past calendar year. 

Between the a variety of kinds of unlawful actions, hacks accounted for the bulk greater part of crypto losses in 2022. A lot more specifically, hackers stole about $3.7 billion, or more than 95% of all crypto misplaced in the 12 months. Frauds, ripoffs, and rug pulls comprised only 4.4% of the complete losses. 

“In 2022, DeFi continued to be the key goal of successful exploits at 80.5% as compared to CeFi at 19.5% of the overall losses,” Immunefi said in a report, introducing that DeFi endured $3,180,023,103 in total losses very last year, throughout 155 incidents. 

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