Defi protocol Qubit suffers $80 million exploit

A hacker successfully exploited the Defi protocol Qubit and stole around $80 million worth of Binance coin.

Qubit is a decentralized platform, which provides users to borrow and lend crypto assets in a decentralized medium. This platform is working on the Binance Smart Chain network. This platform is aimed to provide better service at a very low cost to retail crypto users. 

On 28 January, Qubit finance announced that the platform faced an attack. Through the attack, hackers minted unlimited xETH to borrow on Binance smart chain. And also ensure that the team is working to fix the issues and later the team will give a report on this matter. 

PeckShield, a blockchain analytic platform, shared its point of view on this attack and explained that its role in Qubit is to audit Qubit lending not Qubit Bridge. 

“It seems the QBridge of @QubitFin is hacked to mint a huge amount of xETH collateral and drain the pool funds of about $80M. Please note we audited the Qubit lending, not the bridge!”

In this hacking incident, the Defi protocol team confirmed that they will try to reach the hacker and also will try to offer a maximum bounty reward so that the team can get the stolen funds back. 

Defi exploits tracking platform RugDoc noted that this is the third or fourth hacking in the Defi protocol based on Binance Smart Chain of PancakeBunny protocols. 

According to the BSC explorer data, hackers stole around 206,809 Binance coins.

CertiK Security noted that Qubit protocol was called to deposit function but in Quibridge contract but didn’t deposit and after that Ethereum QBridge was tricked through faked mining of xETHeth. 

“The bridge treats the Deposit event as an event of depositing #ETH because the `deposit` and `deposits` methods in the #QBridge contract emit the same event.”

Read also: U-turn of OpenSea to its imposed limit on NFTs minting tool (updated)