$12M Exploit on Blockchain Project AllianceBlock Highlights Web3 Security Risk
• AllianceBlock, a blockchain project focused on bridging the decentralized finance (DeFi) and TradFi worlds, has suffered a $12 million exploit on Bonq, a decentralized borrowing protocol.
• Attackers exploited a loophole on Bonq, giving them access to 110 million ALBT tokens.
• The Web3 industry lost more than $3 billion to bad actors in the past year, and it appears this trend may continue if adequate security measures are not taken by blockchain projects.
AllianceBlock, a blockchain project that is focused on bridging the decentralized finance (DeFi) and TradFi worlds, recently suffered a devastating $12 million exploit on Bonq, a decentralized borrowing protocol. The attack occurred on February 1st and saw hackers exploit a loophole on Bonq, resulting in the theft of 110 million ALBT tokens.
The project has responded by taking a snapshot of users’ ALBT holdings prior to the attack, minting new tokens, and airdropping them to affected users. The attack has had a profound impact on the price of ALBT, with the token plunging more than 55 percent to trade at around $0.04831 on CoinMarkteCap. Additionally, the hacker reportedly made away with a large chunk of bonq euro (BEUR) tokens and converted it to about 500,000 USDC stablecoin, resulting in the BEUR token hovering around $0.83 at press time, down by over 24.26 percent in the past 24 hours.
Unfortunately, this attack is not an isolated incident and is part of a larger trend of malicious actors targeting the Web3 industry. In the past year alone, more than $3 billion has been stolen by bad actors. For this reason, it is essential that blockchain projects take necessary security measures to protect their assets. It is only through these measures that the Web3 industry will be able to reduce the amount of money lost to malicious actors.