Badger DAO, a protocol allowing users to use bitcoin as collateral across other DeFi projects, has been allegedly exploited. Early estimations show that the amount stolen is around $10 million.
Reports started to emerge earlier today that the DeFi protocol was exploited, with the most predominant theory indicating that the hack was against Badger DAO’s user interface, not in the core protocol contracts.
Users complained about receiving suspicious requests for additional permissions while operating their accounts on the platform.
According to some estimations, the perpetrators stole more than $10 million in various cryptocurrencies.
Shortly after, the project confirmed that it had received numerous reports of “unauthorized withdrawals of user funds.”
Its engineers have started an investigation and have paused all smart contracts in the meantime to “prevent further withdrawals.” However, Badger failed to provide more details on the precise amount stolen or which parts of its operations were affected.
As a consequence of the hack, Badger’s native cryptocurrency (BADGER) has plummeted by 20% from a daily high of $29 to $22.
Just a few days ago, CryptoPotato reported another exploit against a DeFi protocol, in which hackers swiped roughly $30 million in ETH and MATIC.
Badger has received reports of unauthorized withdrawals of user funds.
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.
— ₿adgerDAO 🦡 (@BadgerDAO) December 2, 2021
Following CryptoPotato’s report, new information came to light, suggesting that the actual amount stolen is significantly larger.
PeckShield In., a blockchain security company, indicated that the total loss is north of $120 million in bitcoin and ether.