$80 Million Worth of Cryptocurrencies Stolen From Qubit; $250,000 Bounty Offered

A hacker steals more than $80 million of funds in cryptocurrencies by exploiting a vulnerability on Qubit’s DeFi platform, leaving the company in distress.

Bishal Kumar Chanda2 min read
$80 Million Worth of Cryptocurrencies Stolen From Qubit; $250,000 Bounty Offered

In the latest hack of cryptocurrency marketplaces, more than $80 million in cryptocurrency was swiped from a DeFi platform. On Thursday night, Qubit Finance’s blockchain extension, a DeFi lending platform, was exploited by a hacker, according to a press release. The X-Bridge extension allows users to exchange tokens between the most popular blockchains, Ethereum and the Binance Smart Chain. The auditing firm Certik reported that the attacker gained a total of $185 million in xETH or Xplosive Ethereum. It was done using malicious data to extract tokens from the Binance Smart Schain that was never deposited into Ethereum.

While investigating the issue, Qubit has disabled certain features of the X-Bridge. The company has also issued an open letter to the hacker responsible, offering a bounty of $250,000. The hacker took advantage of a logical code in Qubit Finance’s code and input malicious data to withdraw tokens. It profoundly affects the lives of thousands of real people who invested their funds on the Qubit platform. The company is desperately trying to negotiate with the culprit, and they are even ready to settle with a sum greater than the offered bounty.

Cybersecurity breaches have become common on cryptocurrency trading platforms, leaving investors and companies frustrated. A recent report from Chainalysis revealed that scammers have mooched off more than $14 billion worth of cryptocurrencies in 2021 alone. The numbers are higher by 79% from $7.8 billion in 2020. As for 2022 that has just started, the Chainalysis report says that illicit addresses already hold over $10 billion in cryptocurrencies. The majority of these illicit wallets are associated with cryptocurrency theft.

In the overall cryptocurrency ecosystem, DeFi is one of the most exciting areas that present huge opportunities to crypto users and entrepreneurs. However, the rise in DeFi, which offers lending facilities outside traditional banking, has been a big factor in the increase of stolen funds and scams. As a result, hackers have been targeting DeFi the most, warning those dabbling in this emergent economy. However, all hackers are not bad news for this growing crypto segment. Recently, a white-hat hacker came across a major vulnerability in the US crypto exchange platform, Coinbase. But instead of exploiting it for his benefit, he warned the company and saved hundreds of millions of dollars in potential loss.

While choosing a crypto lending platform to allocate your assets, safety plays a crucial role. Different platforms take different measures to ensure that customer assets are not lost, be it theft or bad management. Before entrusting your assets to any platform, it is highly recommended that you do your due diligence on the platform. Our new article has discussed the five safest crypto lending platforms in the current market. You can also get more information about them in our Reviews section and compare them with each other to find the best crypto lending platform for you.

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