Qubit Finance Hacked for $80M in Latest DeFi Exploit

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The latest decentralized finance project to be harmed by hackers is Qubit Finance as reports of large losses pour in.

Details are thin on the ground at press time, but it appears that Qubit Finance’s DeFi protocol has been exploited.

In the early hours of January 28, the team released a note in their Twitter feed stating that a malicious actor exploited the protocol to mint unlimited tokens on the Binance Smart Chain-based platform:

“The protocol was exploited by; [wallet address]. The hacker minted unlimited xETH to borrow on BSC. The team is currently working with security and network partners on the next steps.”

Qubit suffers an $80 million exploit

Blockchain security and smart contract auditing firm PeckShield confirmed the exploit, indicate:

“It appears that @QubitFin’s QBridge was hacked to mint a massive amount of xETH collateral, draining the pooled funds of around $80 million. Please note that we checked the qubit borrowing, not the QBridge!”

The latest update from the DeFi protocol team specified that it continues to track the exploiter and monitor affected assets and contacted the hacker to offer the maximum bounty.

RugDoc, a feed that monitors DeFi exploits, said it was the third or fourth time BSC-based PancakeBunny protocols were hacked.

According to BSCscan, the address exploiting the protocol contained 206,809 BNB ($79.7 million).

CertiK Security reported that the hacker accessed a deposit feature in the QBridge contract but did not make a deposit. The Ethereum QBridge captured the deposit event and minted $qXETH for the hacker on BSC.

“The QBridge treats the deposit event as an event of deposit of #ETH because the methods ‘deposit’ and ‘depositETH’ in the #QBridge contract emit the same event.”

Seventh biggest DeFi hack

The process was repeated several times to increase the loot, which totaled nearly $80 million, making this hack the 7th largest according to DeFiYield’s Rekt database.

Qubit Finance is a lending protocol optimized for providing loans as a utility for Binance Smart Chain. Its native QBT token has plunged 31% in the past few 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, the Grim Finance protocol lost $30 million in an exploit, a week after Brinc Finance was exploited for $1.1 million.

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