DeFi protocol Badger DAO loses $120 million in exploit, sending prices in a downward spiral
- Badger DAO, a DeFi protocol, is the latest victim of a hack, losing $120.3 million in Bitcoin and Ethereum.
- The protocol’s token Badger DAO price has plunged 16% over the past 24 hours.
- Badger DAO has paused all smart contracts to investigate the unauthorized withdrawals of user funds.
Badger DAO fell victim to the latest hack in the DeFi ecosystem. The protocol lost a total of $120.3 million in wrapped Bitcoin and Ethereum.
Badger DAO price plummets in response to news of hack
Badger DAO, a DeFi protocol, had over $858.5 million in total value locked before falling victim to the recent hack. The protocol lost $120.3 million in Bitcoin and Ethereum late at night on Wednesday.
The news of the hack started doing the rounds on the protocol’s Discord. PeckShield Inc., a blockchain security analytics firm, estimated the total loss at $120.3 million consisting of nearly 2,100 Bitcoins and 151 Ethereum tokens.
Here is the current whereabouts as well as the total loss: $120.3M (with ~2.1k BTC + 151 ETH) @BadgerDAO pic.twitter.com/fJ4hJcMWTq
— PeckShield Inc. (@peckshield) December 2, 2021
The hack may have resulted from an exploit in the protocol’s user interface and not the core contracts. Affected users have reported that their wallet providers asked for additional permissions and the spurious requests were a precursor to the hack.
Earlier today, the Badger DAO team confirmed the unauthorized withdrawal of user funds.
Badger has received reports of unauthorized withdrawals of user funds.
— ₿adgerDAO (@BadgerDAO) December 2, 2021
As Badger engineers investigate this, all smart contracts have been paused to prevent further withdrawals.
Our investigation is ongoing and we will release further information as soon as possible.
Badger protocol informed users that engineers are investigating the cause of the attack, and until further information is uncovered, all smart contracts have been paused. The protocol is no longer facilitating withdrawals.
Users are awaiting the release of further updates from Badger DAO.
The protocol’s token BADGER has plummeted by 16.7% in response to the news of the hack. $57.8 million was shaved off the token’s market capitalization in the frenzy that erupted in the aftermath of the attack. The token continues to face selling pressure on exchanges.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
