Hackers stole $120 million from BonqDAO by changing the price of AllianceBlock (ALBT) tokens. AllianceBlock developers are trying to compensate the community.
The DeFi industry has been vulnerable to various attacks due to vulnerabilities in smart contracts. Due to the immaturity of the industry, DeFi protocols lack the necessary security optimizations in their smart contracts to build a reliable hack-proof platform.
BonqDAO is the latest victim of a DeFi hack as hackers accessed one of its smart contracts to manipulate the price of the ALBT token. Bonq is an over-collateralized lending protocol that also issues a Euro-pegged stablecoin, Bonq Euro (BEUR).
The protocol explained on Twitter that hackers increased the price of ALBT and minted a large amount of BEUR. They later swapped BEUR for other tokens and dropped the price of ALBT to almost zero.
Blockchain security firm PeckShield estimates that hackers took advantage of $108 million worth of BEUR and $11 million worth of ALBT tokens. The AllianceBlock team announced an airdrop of new ALBT tokens to affected users by taking a snapshot before the attack.
The team initially mentioned that addresses trading tokens after the announcement would not be eligible for the compensation airdrop. Investors who panicked and sold the news severely criticized the team's move as unfair.
As a result, the team recently announced that they are considering buy/sell user cases after the Telegram announcement to be fair to those who sell messages. However, no further details have been released.
