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Qubit Finance Exploited for $80M hack

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Intro

Decentralized Finance is seeing a rough patch this week. Qubit Finance, which is base on Binance Smart Chain exploite by hackers. The hack was detecte on Friday morning after the developers confirmed the hack in a tweet. Qubit Finance has become the recent target in DeFi theft. The hack was reporte to be around $80 Million in cryptocurrency. Amount stolen in this hack makes it the most important hack of 2022.s

Decentralized finance (DeFi) projects like Qubit Finance rely on smart contracts instead of third parties to offer financial services, such as trading, lending, and borrowing, to users. It allows its users to offer their crypto holdings to the protocol and borrow loans against a fixed collateral fee. QBridge is a cross-chain feature that enables users to collateralize their assets on other networks without moving assets from one chain to another.

The hackers were able to mint unlimited xETH to borrow on Binance Smart Chain. Since the hack, the team is currently looking to evaluate its security measures. 

The team behind Qubit Finance has messaged the attacker to offer him a bounty. They are also taking actions such as contacting Binance and other security companies.

More about Qubit Finance Exploited for $80M hack

The wallet addresses connect to the theft show that around 206,809 Binance Coins were drain from Qubit’s Qbridge Protocol. The total worth of these coins came out to be over $80 million at the current cryptocurrency rate. This stat was confirmed by PeckShield, a security firm.

PeckShield, which audited Qubit’s smart contracts, said the QBridge was hack to mint a “huge amount of xETH collateral” that was then use to drain the entire amount of BNB held on QBridge.

Security firm CertiK issued an incident report which said that the attacker used a deposit function in the QBridge contract and illegally minted 77,162 qXETH. The hackers made the protocol believe that they deposited funds without making an actual deposit. This exploit is use several times and then the hackers converted all of these assets to BNB. The exploit is the seventh-largest attack on a DeFi protocol by the amount of funds stolen, as per data from analytics tool DeFi Yield.

Since the attack is make public, Qubit’s QBT is down by 35%. Qubit developers continue to monitor the situation at the time of writing.

Let us know what you think about the DeFi exploit in the comments section below.

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