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Hackers stole $80 million worth of cryptocurrency from Qubit DeFi platform

By on January 28, 2022 0

Qubit Finance, a decentralized finance (DeFi) platform, became the latest victim of a high-value theft, with hackers stealing around $80 million in cryptocurrency on Thursday.

The value of the stolen cryptocurrency makes it the biggest hack of 2022 so far.

Qubit Finance acknowledges the hack in an incident report posted on Medium. According to the report, the hack happened around 5 p.m. ET on the evening of January 27.

Qubit provides a service known as a “bridge” between different blockchains, which basically means that deposits made in one cryptocurrency can be withdrawn in another. Qubit Finance operates a bridge between Ethereum and the Binance Smart Chain (BSC) network.

The analysis produced by CertiK, a blockchain auditing and security company, suggests that the hacker was able to exploit a security flaw in Qubit’s smart contract code that allowed them to send a deposit of 0 ETH and withdraw nearly $80 million in Binance Coin in return.

“As we move from an Ethereum-dominated world to a truly multi-chain world, bridges will only become more important,” CertiK analysts wrote. “People need to move funds from one blockchain to another, but they need to do so in a way that is not vulnerable to hackers who can steal more than [$80 million].”

A statement posted by the Qubit Finance team on Twitter appealed directly to the hacker, asking him to negotiate with the team to minimize losses for the Qubit community.

Qubit’s crash report also stated that the team was trying to offer the hacker the maximum possible reward under its bug bounty program. A listing for Qubit on the bug bounty platform Immunefi suggests it is $250.00.

Since the launch of Binance Smart Chain in 2020, several DeFi projects have suffered exploits. The most serious include a $31 million hack on Meerkat Finance in March 2021, a hack on Uranium Finance for $50 million in April, and an $88 million hack on Venus Finance in May, according to Crypto Briefing.