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A Single User Loses $50 Million of Bitcoin in Badger DAO Hack

In 2021, there has been a trend of decentralized finance (DeFi) protocols being breached. These exploits have led to over $10.5 billion worth of user funds being stolen through DeFi scams and theft in 2021.

Just days before its one-year anniversary, BadgerDAO, a Bitcoin-focused decentralized finance project built on the Ethereum blockchain, has become the latest DeFi protocol to fall victim to a network breach. 

According to PeckShield, a blockchain data and security analytics company, a total of $120.3 million was stolen in the front-end attack of the BadgerDAO protocol.

Before the hack, Badger was ranked as the 23rd largest DeFi protocol on Ethereum. By the end of November, BadgerDAO had reached a TVL (total value locked) of $1.25 billion. According to Defipulse, the protocol’s TVL has now dropped to $787 million.

 

A Single User Lost $50 Million

In the breakdown of the network breach, PeckShield revealed that a single user had lost 896 BTC (worth roughly $50 million at the current price of Bitcoin at the time of writing) to the network breach.

PeckShield Tweeted;

On the Flipside

  • Despite the repeated attacks on DeFi protocols, the sector is enjoying a period of increased attention from investors – over $275 billion is currently locked in DeFi protocols.

Why You Should Care

The recurring security issue is one challenge DeFi protocols must find a solution to, as they aim to attract mass adoption.

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    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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    Author

    Milko Trajcevski has been in the crypto world for years, and as such has gathered both a skill for writing as well as a native prowess when it comes to understanding everything that occurs within that world. Through skilled writing and determination, he covers articles about cryptocurrency, tokens, blockchain, crypto-asset regulations, crypto wallets, exchanges, liquidity, DApps, forks, mining, security, and blockchain technologies. He is a professional with a track record of proven expertise within the crypto space.