$120 million in Cryptocurrency was stolen from BadgerDAO, a DeFi platform

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Hackers have stolen approximately $120 million from many cryptocurrency wallets linked to the BadgerDAO decentralized finance network.

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The robbery serves as a reminder of the risks inherent with cryptocurrency trading. Peckshield, a blockchain security and data analytics startup, is investigating the latest crime and has established that hackers took a total of $120 million in tokens. All smart contracts on the platform have been suspended to prevent any additional withdrawals.

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“Unauthorized withdrawals of user funds have been reported to Badger. To prevent additional withdrawals, all smart contracts have been suspended while Badger developers investigate “BadgerDAO confirmed the attack in a tweet. Someone inserted a malicious script into the UI of the platform’s website, according to the platform. When a user interacted with the site while the script was active, it intercepted Web3 transactions and initiated a request for the victim’s tokens to the attacker’s specified address.

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The stolen tokens range from common coins like wrapped bitcoin (WBTC) and convex financing (CVX) to more sophisticated tokens like “ibbtc/sbtcCRV-f,” according to PeckShield. Many of the tokens represent assets housed in a vault, which means they may be exchanged for a variety of tokens. It makes determining the actual value of the stolen funds even more difficult for the investigating agency.

One user lost more over $50 million in a single transaction, according to the agency. 896 Bitcoins were transferred from one user’s account to the attackers’ account in this case. Another lost $5 million in tokens in a single transaction. Badger froze all smart contracts and urged users to cancel all transactions to the attacker’s addresses once it became aware of the illegal transfers.

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“Data forensics experts Chainalysis have been recruited to study the entire scope of the event,” the business said. “Authorities in both the US and Canada have been informed, and Badger is fully cooperating with external investigations as well as progressing with its own.”

BadgerDAO, for those who are unfamiliar, is a DeFi (decentralised finance) platform that focuses on generating bitcoin yield. The idea is that you wrap your bitcoin and transfer it to a smart contract platform like Ethereum. After that, these coins can be utilized in DeFi applications. The platform offers customers a selection of vaults in which they can store their wrapped bitcoin and receive dividends based on the vaults’ yield generation tactics.

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It’s yet unclear whether the platform will be able to retrieve the payments. The incident, however, should serve as a warning to everyone involved in the crypto or blockchain industries. Users must be extremely cautious before approving a transaction, otherwise they risk losing a large sum of money all at once.

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