BADGER Crashes Over 22% After $120.3 Million of User Funds Get Stolen
The price of the BADGER token has lost more than 22% of its value to drop to $21.32 as the decentralized finance (DeFi) protocol BadgerDAO fell victim to a hack on Thursday.
BadgerDAO is focused on building products to bring Bitcoin to DeFi and provide yield on the leading crypto asset. The protocol has $1.1 billion of crypto assets locked (TVL) in it.
“Badger has received reports of unauthorized withdrawals of user funds,” confirmed the BadgerDAO team on Twitter.
“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,” the team added.
Security researcher PeckShield reported that a total of $120.3 million involving 2.1k BTC and 151 ETH was stolen from the protocol. One user lost as much as 900 BTC in this exploit.
The attack was reportedly made through the front end of the BadgerDAO, and according to an admin in the project’s Discord channel, the API key for Cloudflare could have been compromised.
i would think its pretty hard to avoid front end attacks for the average user (recent badger attack)
you need to have a certain level of paranoia to lookup every transaction and unfortunately i think im gonna have to be a bit more diligent and slow down to start doing this
— 찌 G 跻 じ ( 𝙃𝙚𝙣𝙩𝙖𝙞, 𝙎𝙚𝙣𝙥𝙖𝙞 ) (@DegenSpartan) December 2, 2021
In the light of the exploit, it is important that users pay attention to addresses and how much amount in different tokens they are approving.