DeFi tool ‘Bogged Finance’ sees $3 million hack, prices plunge 98%
Last night, the Ethereum-based decentralized finance (DeFi) tool Bogged Finance fell victim to a hack that resulted in the loss of nearly $3 million worth of ETH. The Bogged Finance team has confirmed the theft, and the Bogged Finance Token (BFT) is now trading for less than one cent. And as further evidence that we are in 2019, the BFT price drop has been accompanied by a spate of schadenfreude, with many posting joyous comments such as “LOL” and “Hahahaha” on Twitter.
As hackers become more sophisticated, it’s getting harder for blockchain startups to protect their assets. This week, a DeFi tool called Bogged Finance suffered a major attack. Hackers stole $3 million worth of the platform’s native token, which caused the currency to plunge in value to $0.02 from a high of $0.10. While users were able to recoup their losses by redeeming the remaining tokens, the incident illustrates how vulnerable new companies are to cyber attack.
This morning, CoinDesk reported that a cryptocurrency wallet service, called Bogged Finance, had been hacked. Early reports suggest that it may have lost about $3 million in cryptocurrency—$29 million in the Bogged token, $1 million in the Boggit token, and $1 million in the Boggit token. Bogged Finance is a cryptocurrency wallet service that offers both online and mobile applications. While security of cryptocurrency wallets has been a longstanding concern, the Boggit wallet has been the subject of criticism in the community for its lack of security, and there were rumors that it was a scam. This news does little to assuage those concerns.
An error in a smart contract led to $3 million being taken from Binance’s Smart Chain Bogged Finance exchange over the weekend, multiple sources reveal. As a result, the SNB protoque has decreased by 98%. We are aware of the attack on BOG and are as shocked as you are. We believe we have prevented further thefts of our money, the developers wrote on Twitter on Saturday, shortly after the hack. We are aware of the attack on BOG and are as shocked as you are. We believe that we have succeeded in preventing further thefts of a large part of our cash. We will make further announcements in the coming hours and days. – BogTools – The power of DeFi on #BSC. (@bogtools) 22. May 2021 THE REBOOT IS IMMINENT. Don’t buy $BOG at this point, reads the project’s Twitter bio.
Break-in locked DeFi
The hacks of decentralized financial systems (DeFi) are mainly taking place in the cryptocurrency sector. The technology is new and highly experimental, and the lack of sufficient experience in managing such a complex infrastructure leads to multiple small players being hacked. And while the players are small and unknown, the losses are large and dramatic – enough to make the front pages of the world if it had happened to a traditional company. Bogged fell victim to this problem over the weekend. The protocol allows users to browse and place limit orders on any token on Binance’s Smart Chain and is part of the broader BogTools suite for other DeFi services and transactions. According to PeckShield, Bogged Finance, a DeFi protocol on BSC, was attacked by a flash credit, resulting in a loss of $3.62 million. This is the third BSC attack related to flash loans. BOG price collapsed from 8.5 to 0.15, a drop of 98% pic.twitter.com/vdko7YRk9u – Wu Blockchain (@WuBlockchain) May 23, 2021 As the Bogged team explained in an official statement, the attacker used an advanced Flash-based credentialing attack that targeted the operation of the protocol. Flash loans, for the uninitiated, are unsecured lending options that allow users to borrow money instantly without collateral, provided the money is returned to the pool in one transaction block. The attacker was able to use flash credits to exploit a vulnerability in the BOG smart contract rate range to manipulate rate rewards and cause bid inflation, the team said. Bogged’s team was able to detect and fix the attack within 45 seconds. However, the damage has already been done and the hacker has pocketed nearly $3 million.
In a statement, the Bogged team said it would take the current money off the platform and move it to a new contract. We remove all funds from the liquidity pool using the same exploit used by the attacker, the team said. Users and holders of tokens will also receive compensation. We expect to burn about 7.5 million chips during this migration, but the exact number is subject to change. We will then return the liquidity coins to their rightful owners, and then return the legally held and purchased $BOG to their owners, the team explained. The money is safe in the Deplayer’s wallet and is distributed in the form of LPs to LP.https://t.co/CXgkw1jmse Stackers – BoggedFinance : Charts, limit orders and DEX. (@boggedfinance) 23. May 2021 Flash loan attacks in the past have resulted in tens of millions of dollars in losses for token holders and liquidity providers. Most offer compensation plans to maintain their reputation, but they rarely stress that most DeFi trades are still very risky and experimental, and that betting more than you can afford to lose is hardly a wise decision.
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Blockchain technology has made it easy for individuals to raise or borrow money without the need for intermediaries, but it has its flaws. For example, the decentralized nature of the technology means that no one is in charge if a smart contract is hacked. That’s what happened to a lesser-known decentralized finance tool called Bogged Finance, which was exploited on June 17th.. Read more about bogged finance coin and let us know what you think.