The latest decentralized finance project to suffer at the hands of hackers is Qubit Finance as reports trickle in of large losses.
Details are very thin on the ground at the time of writing, but it appears that the Qubit Finance DeFi protocol has been exploited.
In the early hours of Jan 28 the team posted a notice on their Twitter feed stating that a malicious actor had exploited the protocol to mint unlimited tokens on the Binance Smart Chain-based platform:
“The protocol was operated by; [wallet address]. Hacker created unlimited xETH to borrow on BSC. The team is currently working with security and network partners on next steps.
Qubit suffers $80 million exploit
Blockchain security and smart contract auditing firm PeckShield confirmed the exploit, stating:
“It looks like @QubitFin’s QBridge is being hacked to create a massive amount of xETH collateral and drain pool funds of around $80M. Please note that we audited the Qubit loan, not the QBridge!
The latest update from the DeFi protocol team stated that it continues to track the exploiter and monitor affected assets and has contacted the hacker to offer the maximum bounty.
RugDoc, a stream that monitors DeFi exploits, said this was the third or fourth time BSC-based PancakeBunny protocols were hacked.
According to BSCscan, the address exploiting the protocol had 206,809 BNB ($79.7 million) sitting in it.
CertiK Security reported that the hacker called a deposit function in the QBridge contract but did not make a deposit. Ethereum QBridge captured deposit event and hit $qXETH for hacker on BSC.
“The QBridge treats the Deposit event as an event of depositing #ETH because the `deposit` and `depositETH` methods in the #QBridge contract emit the same event.”
Seventh largest DeFi hack
The process was repeated several times to increase the loot which totaled nearly $80 million, making this hack the seventh largest according to DeFiYield’s Rekt database.
Qubit Finance is a lending protocol optimized to deliver lending as a utility for Binance Smart Chain. Its native QBT token has crashed 31% over the past couple of hours and is currently trading at an all-time low of $0.004, down 99.2% from its September all-time high of $0.58.
Last month, protocol Grim Finance lost $30 million in an exploit a week after Brinc Finance was mined for $1.1 million.
