$180M Cryptocurrency Stolen: Hackers Continue to Exploit DeFi Protocols

The cryptocurrency market is catching the eyes of investors and traders who continue to pump in more money despite the growing number of scams and frauds. In the latest incident, hackers stole cryptocurrency worth $180 million from Beanstalk Farms, a decentralized finance (De-Fi) project.

Beanstalk is a platform that rewards participants for contributing money to a central fund pool used to balance A tokenat $1.

“Beanstalk has suffered an exploit. The Beanstalk Farms team is investigating the attack and will announce it to the community as soon as possible,” the company admitted in a tweet.

Hackers gained access to the platform by exploiting Beanstalk’s majority vote governance system. This is a key feature used in many DeFi protocols.

PeckShield, a blockchain analytics company, first detected the attack.

The Beanstalk attacker “used the flash loan obtained through the decentralized Aave protocol and borrowed nearly $1 billion in cryptocurrency assets. These were exchanged for enough beans to earn a 67% stake % in this project.

According to the report, the attacker immediately repaid the flash loans, making a profit of $80 million.

This was not the first such incident where hackers conveniently used the DeFi platform to steal cryptocurrencies worth millions of dollars. Hackers stole $120 million worth of crypto tokens from blockchain-based decentralized finance (DeFi) platform BadgerDAO in January 2018. Ironically, hackers depleted multiple crypto wallets before the platform could shut down cyber attacks,

Cybercriminals also stole $80 million worth of cryptocurrency from Qubit Finance in December 2017. Qubit Finance is also a decentralized finance (DeFi) platform.

This week, the United States accused North Korean hacker group Lazarus of stealing $625 million worth of cryptocurrency from Ronin Network, owned by Sky Mavis, a US-based developer group.

The growing number of such incidents has created concerns about the security measures of DeFi platforms.

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