News

bZx Suffers Second Attack, $645,000 Worth ETH in Jeopardy

bZx, a decentralized finance (DeFi) protocol on Ethereum (ETH) network, has been hacked again, losing an estimated amount of 2,388 Ethers worth around $645,000.

“This attack appears to be an oracle manipulation attack,” Kyle Kistner, co-founder of the platform, wrote on its official Telegram channel.

This is the second attack on the DeFi platform in a span of four days as the first attack the hackers managed to siphon 1,193 Ethers with a market value of almost $322,000, as of press time.

“Note that this is not yet a loss, but has the potential to become a loss,” Kistner mentioned about the impact of the first attack. “According to our calculations, the collateral currently residing in our vault is enough to service interest payments at market rates on the loan for hundreds of years if nothing is done. However, there is an element of volatility risk since the collateral is in wBTC, the interest is denominated in ETH, and interest is only converted into ETH every 28 days.”

Leave a Reply

Your email address will not be published.