DeFi protocol bZx compromised again: $55 million stolen in private key leak
November 5, 2021, 11:49AM EDT
1 min read
Decentralized finance (DeFi) lending protocol bZx was compromised for $55 million today, in what is becoming a recurring theme.
According to a tweet from the protocol today, the private key controlling the project’s deployment on Polygon and Binance Smart Chain (BSC) was compromised earlier in the day.
Blockchain security outfit SlowMist issued an alert stating that over $55 million was siphoned from the project by suspected attackers.
As of the time of writing, these funds are domiciled in seven separate addresses believed to be controlled by the hacker. According to the breakdown by SlowMist, the address with the most funds holds about $18.4 million, with other addresses having balances of $6 million, $13.8 million, $15.5 million, and $697.
The bZx team has advised yield farmers who have interacted with the protocol on the Polygon and BSC chains to revoke such approvals as quickly as possible.
The DeFi lending protocol also stated that the bZx’s smart contract was not affected by the private key leak. Also, with the project’s Ethereum deployment under the governance of a decentralized autonomous organization (DAO), funds on that particular chain are also reportedly safe from the incident.
As cryptocurrencies become increasingly mainstream, regulators, the media and policymakers are paying more attention to the financial crime risks associated with them. But what are the biggest compliance challenges crypto firms face, and what does a best practice AML program look like?
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
TRON DAO has announced the launch of a $10 million incentive fund in light of recent events to support Terra developers migrating to the TRON ecosystem, including TRON’s EVM compatible cross-chain solution BitTorrent Chain (BTTC), which helps facilitate the seamless transfer of assets across mainstream public chains, including TRON, Ethereum, and BNB Chain.