ALBT token crashes by 72% following an almost $4 million exploit on AllianceBlock and BonqDAO

The crypto space witnessed the first major attack for the month of February on Wednesday as the decentralized borrowing protocol Bonq was exploited. The assets that took an impact included the wrapped native token ALBT of AllianceBlock, which the exploiter stole over 100 million coins of.

AllianceBlock and Bonq are under attack

Announcing the confirmation AllianceBlock verified that a bunch of the ALBT Troves on Bonq were attacked. This enabled the attacker to gain access to nearly 110 million ALBT tokens which have since been siphoned off by the exploiter.

While the exact chain of events leading up to the attack is yet to come forward, AllianceBlock and Bonq were quick to react and stop further damage. 

In a tweet, AllianceBlock confirmed that all exchange trading activity had been halted, and all liquidity was in the process of being removed.

Additionally, all activity on the AllianceBlock Bridge has also been stopped for now. Similarly, the Bonq protocol was also paused, with the DAO team stating,

"Bonq protocol was exposed to an oracle hack, where exploiter increased the ALBT price and minted large amounts of BEUR. The BEUR was then swapped for other tokens on Uniswap. Then, the price was decreased to almost zero, which triggered the liquidation of ALBT troves… We're working on a solution that will allow users to withdraw all remaining collateral without repaying BEUR in the troves. It will be released tomorrow morning CET."

AllianceBlock further announced that all impacted users would be rightly compensated for their losses. Going forward AllianceBlock announced that the team will be taking a snapshot of the users just before the attack.

This will allow the firm to find out exactly how many and how severely users were attacked. To compensate the impacted, a new ALBT token will be minted and dropped in these users' addresses.

ALBT takes the hit

Following the attack, both ALBT and Bonq Euro (BEUR) tokens were impacted, and consequently, their value declined significantly. At the time of writing, the BEUR asset registered a 22.72% dip, with the price of the coin falling to $0.85. 

ALBT/USD 1-day chart

On the other hand, ALBT, within the first few hours of the attack, fell victim to excessive panic and selling, with volumes reaching record highs. The price, as a result of the same, fell by more than 74% before recovering considerably. At the time of writing, the value of the asset fell from $0.12 to $0.03, with another red candle appearing on the charts.