Qubit Finance Suffers $80 Million Hack With xETH Minting Scheme

Qubit Finance Suffers $80 Million Hack With xETH Minting Scheme

Ethereum News News
January 29, 2022 by Editor's Desk
699
The Qubit Finance project suffered a break-in this past Friday, resulting in the company losing 206,809 BNB. At this point, the hackers are using QBridge to create lots of xETH while intending to withdraw all of their BNB holdings. The company was not planning on adding these assets to the list of DeFi exploits until
Qubit Finance Suffers $80 Million Hack With xETH Minting Scheme

The Qubit Finance project suffered a break-in this past Friday, resulting in the company losing 206,809 BNB. At this point, the hackers are using QBridge to create lots of xETH while intending to withdraw all of their BNB holdings. The company was not planning on adding these assets to the list of DeFi exploits until next week.

Qubit Finance was the recent victim of a high-profile DeFi hack. The decentralized lending and borrowing platform which works on the Binance Smart Chain protocol has recently suffered an $80 million theft.

Hackers have stolen 206,809 Binance Coin (BNB) from the QBridge Protocol of Qubit using their address. Meanwhile, in response to the hack, the Qubit Finance team has tweeted a statement notifying their clients about tracing the hacker and siphon. The post also warned the exploiters to discuss negotiations before any company actions are taken

Blockchain security and data analytics company PeckShield has revealed that the reason for the hack is to create an immense amount of xETH (xplosive Ethereum) collateral. xETH provides a wallet service for secret transactions and bring more privacy. The hackers have created a scheme to empty all the BNB stored on QBridge.

Recently, CertiK pointed out the possible dangers in the deposit function on QBridge. They were able to send 77,162 qXETH (QBridge’s native currency) to themselves without being affected by trade caps or authentication. The defunct database informs us that hackers have used this fraudulent activity several times to convert all the hijacked assets to BNB, making it the seventh-largest exploit in DeFi.

Despite the crypto industry widening, instances of fraud like protocol exploits, rug-pulls, and hacks have been on the sidelines. To add, Crypto.com revealed a loss of $34 million worth of cryptocurrencies from 483 users. Nearly $19 million in both Bitcoin and Ethereum were exploited. Additionally, other cryptocurrencies also were affected by this incident.