The exploiter was able to control the price of the AllianceBlock (ALBT) token after BonqDAO informed its Twitter followers on February 1 that an oracle breach had compromised its Bonq protocol. This enabled the exploiter to steal tokens.
How the hack was carried out
Multichain portfolio tracker DeBank, also states that the most significant transaction using the exploit took place on February 1 at 6:32 pm UTC and included the sum of $82.19 million. On the majority of occasions, high-scale transactions were carried out over the Polygon network.
Because of this, the exploitation of the wALBT and the BEUR was activated. After that, the hacker used Uniswap to convert around $500,000 worth of BEUR into USDC before destroying all 113.8 million wALBT to unlock ALBT.
PeckShield and other people have noticed that the price of BEUR and ALBT tokens has dropped significantly in a concise period:
“We are working on a solution enabling consumers to withdraw any leftover collateral without first refunding any BEUR held in the troves. It is scheduled to be made available tomorrow at tweo’clocklock “ET,” it claimed.
AllianceBlock falls victim to BonqDao’s hack
Amid the recent hack, an exploiter was additionally able to obtain access to 113.8 million ALBT tokens, which was the news that AllianceBlock, the company that issued the ALBT tokens, conveyed with its 51,300 followers on Twitter on February 1. AllianceBlock is the company that created the ALBT currency.
According to the statement, trading on the exchange has been paused, and the team has begun withdrawing all liquidity from Bonq. It also said that no smart contracts were abused on AllianceBlock.
In addition, the notification made by AllianceBlock said that the company would create additional ALBT tokens and distribute them to those users who were affected by the exploit up to the time the news was made.
BonqDAO is a decentralized autonomous group with the mission of providing people and companies with the opportunity to engage in self-sovereign financial transactions that are free of interest and do not need the transfer of ownership of their assets. AllianceBlock is a decentralized infrastructure platform that links Web3 apps to conventional financial institutions.