The latest decentralized finance (DeFi) platform to suffer at the hands of hackers has been the BXH transaction protocol and it may become the second largest exploit ever.
On Oct 30, the Binance Smart Chain-based lending protocol BXH announced that it had been attacked.
Chinese media outlet Wu Blockchain reported that at least 4,000 ETH was stolen and other sources such as SlowMist estimated the losses to be in excess of $130 million. On Nov 1, Wu added a report from CoinWind that showed the extent of the losses could have been even more.
As much as $150 million may have been stolen in the hack, and the majority of the victims were Chinese whales, he stated.
This may be second only to PolyNetwork’s coin theft case, and due to the existence of the smart pool, many other protocols have also suffered significant losses. For example, COW said that there are 150 million funds in BXH. The main losses are some Chinese whales.
Private keys compromised
Details are thin on the ground at the time of writing, but BXH did state that private keys were compromised. It followed up by locking the smart contracts on other blockchains such as HECO to secure assets there.
It also asked the attackers to return the funds offering a white hat bounty but did not disclose the figure.
BXH is the latest victim in a long list of DeFi hacks this year, the majority of them being BSC-based. According to DeFiYield’s Rekt database, $1.93 billion has been lost to crypto hacks, scams, and exploits over the past five years.
PolyNetwork was the largest with $600 million stolen in August. Cream Finance is currently second after losing $130 million last week but BXH may take that spot if it has lost more. Cream has now been hacked three times this year.
On Oct 15, Indexed Finance lost $16 million in a hack that exploited its balanced pools. The list of exploited BSC protocols is growing and currently includes PancakeBunny, Cream Finance, bEarn, Bogged Finance, Uranium Finance, Meerkat Finance, SafeMoon, Spartan Protocol, and Belt Finance.
The protocols native token has dumped 47% since the hack occurred. Prices fell from around $0.083 before the hack to $0.044 where they currently trade.
BXH has now lost 96% from its April 22 all-time high of $1.12, recovery from this point is not looking likely.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.