Hackers steal $55m through Ethereum based DeFi network protocol hack

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Cybersecurity Insiders has learnt that bZx, a crypto finance based company, was hacked recently to steal $55m worth of cryptocurrency and the company’s IT team is still wondering how the hacker made it into the Ethereum related network.

Prima facie has revealed that the hacker/s used a private key in the Defi( Decentralized Finance) protocol to transfer the currency from the company’s central repository and moved the funds to unnamed wallet/s that are hard to track on the blockchain.

DeFi is a kind of finance protocol that uses smart contracts on blockchains running without intermediaries. Mainly, such protocols are used to transfer Ether digital currency and, to a certain extent, Monero.

bZx claims that the threat actors somehow compromised a private key on its smart contracts on Polygon and Binance Smart Chain (BSC) and then took control to transfer funds worth $55m from the liquidity pools.

Although, most of the money belonged to the company’s secure fund, around 25% of the stolen currency is claimed to belong to users. Therefore, users are being urged to revoke permissions set by them to any contracts.

bZX has assured that its Ethereum Smart Contracts were safe enough as their private keys were secured by multi-party authentications supervised by Decentralized Autonomous Organization(DAO).

Note- DeFi allows any Ether user connected to the internet utilize the products and services related to digital currency finance.

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Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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