Bitcoin

Bitcoin Daily: Balancer Reports $500K Token Theft Attack

Bitcoin Daily: Balancer Reports Token Theft Attack

Balancer Pool suffered a complicated attack that took advantage of a technicality in its system, Coindesk reported. The identity of the attacker is still reportedly not known, and the hacker is said to have hidden his or her footprint effectively.

Exchange aggregator 1inch said in a blog post, “The person behind this attack was [a] very sophisticated smart contract engineer with extensive knowledge and understanding of the leading DeFi protocols.”

The hacker reportedly borrowed WETH tokens through a flash loan and then traded STA himself or herself. STA is a token that loses a small percentage of its value with every trade.

He or she reportedly traded STA and WETH a number of times up to the point that the STA liquidity pool was so depleted that the balance was practically zero. The attacker reportedly conducted the same attack with SNX, LINK, and WBTC.

The news comes as Balancer recently rolled out its own “BAL” token.

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