ETH DeFi Project bZx Got Hacked Again Out Of $55 Million

The ETH Defi project bZx got hacked again just hours ago and more than $55 million were affected, with the project saying ETH contracts and treasury funds remain unaffected so let’s read more in our latest Ethereum news today.

The ETH DeFi Project bZx is a defi lending protocol and now it is investigating an exploit of a private key linked to the Binance Smart Chain and Polygon deployments. However, this lending protocol that is built on Ethereum and Binance Smart Chain, has already been hacked once before. Tweeting about the incident, the team stated that the smart contracts themselves were not compromised but that the incident only impacted the BSC and Polygon deployments with a compromised key. The Ethereum smart contracts were not compromised. A year ago, the protocol was on the receiving end of two hacks that prevented it from taking advantage of the rising popularity in Defi which leverages blockchain technology to cut out the middlemen from savings, loans, and swaps.

#bZx private key compromised, over $55 million dollars stolen so far. We’ll continue to update as more information is discovered. @RektHQ @ChainNewscom @bZxHQ https://t.co/SM6WWDt06J pic.twitter.com/39S05IiBFr

— SlowMist (@SlowMist_Team) November 5, 2021

Back in February this year, the total value of crypto assets committed to Ethereum-based Defi protocols was worth less than $1 billion and bZx got caught off-guard by a huge margin-lending exploit. In one of the first instances of the flash, loan exploits, the platform lost about 1200 wrapped ETH and the theft was worth $366,000 then but now it would be valued at $6 million today. The September 2020 exploit drained 30% of the funds that were locked in the protocol but then they were worth $8 billion. bZx paused the protocol initially but reported that the funds outlined were debited against the insurance fund and the actual users with the open margin positions did not get hurt.

With the Ethereum Defi market having expanded to over $170 billion and BSC and other chains getting in on the fun, the price tag is only getting higher and said it has the funds in its DAO treasury to cover this exploit.

Speaking of Ethereum, Crypto platform Bakkt announced it will soon start offering Ethereum to its customers. It was launched in 2018 by the Intercontinental Exchange as the parent company of the New York Stock exchange and currently, it deals only in Bitcoin. The US company offers a huge number of services including a BTC futures trading service as well as a mobile app that allows users to spend their BTC in shops.