Hackers were able to break into the DeFi bZx lending protocol and steal $ 8 million worth of cryptocurrencies. This is not the first time - in the year - that the DeFi protocol has been attacked.
This time, the hackers were much more effective as they stole a huge amount of money from the trading and lending platform. The hackers took advantage of a vulnerability that gave them access to the USDC, USDT, ETH and LINK, worth a total of $ 8 million.
Anton Bukov, a member of the bZx team, posted the news on Twitter and admitted that the company once again fell victim a hacking attack. He also said that the hacking started because of one error on the line code for a smart contract.
How the attack happened
The researchers investigated in depth attack to learn how hackers were able to break into the DeFi protocol again. The report showed that there was a vulnerability in the "transferfrom0 protocol", which allowed the successful transfer of ERC20 between protocols.
This facilitated the start of the function during creation and iToken portability. Hackers were able to start a transfer operation using the same form - as well as the address of the main operation. Shortly afterwards, they used an InternalTransferFrom function with a single parameter to convert the code to defective.
After stealing $ 8 million from the DeFi protocol, the bZx hackers immediately corrected the "defective code".
This is not the first time bZx has been attacked
It seems that bZx is facing various problems since it is not the first time it has fallen victim to one attack. According to a previous report, a hacker successfully stole $ 1 million in ETH in two successful attacks in February.
The first attack took place on February 14 and the second occurred four days later and the hacker apparently used two completely different methods of attack.