Crypto Stablecoin Collapses After $182M Hack

Share on facebook
Share on twitter
Share on linkedin
Share on reddit

Hacking. Disinformation. Surveillance. CYBER is Motherboard’s podcast and reporting on the dark underbelly of the internet.

Hackers stole $182 million from an Ethereum-based stablecoin protocol in what’s yet another attack on a crypto project. 

On Sunday, cybersecurity firm PeckShield reported the attack on Beanstalk Farms, saying hackers stole more than $80 million for themselves, but the protocol’s losses appeared to be even higher. The company later said its initial analysis showed the losses amounted to around $182 million. 

Advertisement

An hour after the hack was reported, Beanstalk confirmed it had been hacked in a tweet saying it had “suffered an exploit” and it was “investigating the attack.” 

On Beanstalk’s official Discord channel, Publius, one of the developers of the project, commented on the hack, saying: Honestly not sure what to type. We are fucked. This project has not had any venture backing, so it is highly unlikely there is any sort of bail out coming.”

“Really a horrible day,” he added. “There are no funds left. […] they minted enough Beans to sell them and drain the liquidity on all pools.”

Because crypto can be so volatile, numerous stablecoin projects have popped up to provide even-keeled refuge for traders in the complex world of decentralized finance, or DeFi. Beanstalk did not seek to back its peg with cash reserves, but rather constructed financial incentives for protocol participants, who loan the platform tokens in return for a yield. The hack has caused

Read more

Explore the site

More from the blog

Latest News