Qubit Finance lost $80 million in a crypto heist

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Hackers exploited the protocols of Qubit Finance, a decentralized finance (DeFi) project, and stole $80 million worth of cryptocurrency on Thursday, making it the most notorious crypto heist of 2022 so far.

After the incident, the company pleaded with the cyber criminals to return the stolen funds to understand the situation as many people lost their hard earned money.

The company confirmed the hack in a tweet on Friday and revealed that the hackers created countless Xplosive Ethereum to borrow on Binance Smart Chain (BSC).

Bitcoin still maintains a price of $38,000. Source: Tradingview.com

The victim company contacted the hackers directly and asked them to negotiate to minimize the loss of community. Additionally, the company offered a $250,000 bug bounty to hackers to return stolen assets.

In a tweet, the Qubit Finance team wrote:

“We suggest that you negotiate directly with us before taking any other action. The exploitation and loss of funds profoundly affects thousands of real people. We are open to conversation if the bonus offer is not what you are looking for. Let’s find a situation, “

Certik, a blockchain security company, analyzed the incident and revealed how hackers transferred cryptocurrencies to multiple addresses.

In a report, Certik said;

“For non-technical readers, what the attacker essentially did was take advantage of a logical error in Qubit Finance’s code that allowed them to enter malicious data and withdraw tokens on Binance Smart Chain while that none have been deposited on Ethereum.”

Qubit Finance offers hackers $1 million in bug bounty

Qubit Finance is a crypto-oriented platform that works as a bridge between different blockchains to move digital currencies. To put it more simply, it allows users to withdraw in another cryptocurrency instead of depositing.

Qubit team continuously contacts hackers to minimize the loss one way or another. So, again, on January 29, they offered the hackers a hefty $1 million in bug bounty.

In another tweet, Qubit Finance increased the bug bounty amount and mentioned it;

“We know you can get away with $80 million. Please consider many people, families and stories involved. Accept a well-deserved $1,000,000 as a bounty, possibly one of the highest in history.

Hacking the DeFi platform is not new since BSC launched in 2020. For example, Venus Finance lost $88 in a hack in May 2020, and Uranium Finance faced a $50 million hack in April 2021.

Historically, crypto crimes are increasing sharply. According to the report by blockchain research firm Chainalysis, cybercriminals embezzled $14 billion in 2021, up 79% from the previous $7.8 billion in 2020.

Featured image from TechNewsWorld, chart from TradingView.com

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