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Alex Dovbnya

A hacker has drained $80 million from Ethereum-based stablecoin protocol Beanstalk

Beanstalk, an Ethereum-based stablecoin protocol, has been drained of more than $80 million worth of various cryptocurrencies, according to blockchain security firm PeckShield.

In a series of tweets, PeckShield explained that the hacker was able to use a flash loan attack in order to purchase plenty of BEAN tokens.

They then created a fake BIP-18 in order to mint an unlimited number of tokens.

The Beanstalk (BEAN) stablecoin has lost its peg, collapsing to virtually zero following the attack, according to CoinGecko data.

CoinGecko
Image by coingecko.com

It is a collateral-free stablecoin that relies on a decentralized community of lenders in order to maintain its price stability.

At press time, the hacker managed to move roughly $30 million to Tornano Cash, a coin mixing tool that runs on top of the Ethereum blockchain.





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