AllianceBlock (ALBT) and BonqDAO have suffered a major blow after a hacker exploited ALBT and BEUR before escaping with $120 million.
Since the hack, ALBT has fallen over 63% after already pushing through a harsh bear market.
The hacker exploited ALBT through BonqDAO, a lending protocol related to the overcollateralized stablecoin BEUR.
ALBT and BonqDAO exploited for $120 million after hacker exploits BonqDAO
According to BonqDAO’s statement about the attack on Twitter, the protocol was exploited by a hacker who minted tons of BEUR tokens after artificially increasing ALBT's token price.
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From BonqDAO’s Tweet:
Bonq protocol was exposed to an oracle hack, where the exploiter increased the ALBT price and minted large amounts of BEUR.
The BEUR was then swapped for other tokens on Uniswap. Then, the price was decreased to almost zero, which triggered the liquidation of ALBT troves.
AllianceBlock made an announcement on Twitter to update their holders and community about the attack. AllianceBlock confirmed that the ALBT smart contract was unaffected but has decided to stop activity on the AllianceBlock Bridge while investigations begin.
Moving forward, AllianceBlock will snapshot token holders before the exploit and mint a new ALBT token which will be airdropped to all holders prior to the exploit.
Unfortunately, those who sold their ALBT tokens after the snapshot will not be eligible for the new airdrop.
Since the price of ALBT was affected by the hack, some traders may have panicked and sold their ALBT holdings in the chaos.
Members of the ALBT community have protested AllianceBlock’s decision to not airdrop new tokens to traders who sold after the snapshot.