DeFi protocol Badger DAO loses $120 million in exploit, sending prices in a downward spiral

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. 

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 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.