Zabu Finance Exploited on Avalanche, losts $3.2M

Zabu finance faced a big attack on the Avalanche platform. And the team confirmed that they faced a loss of around $3.2 million.

Attacks on the Defi projects seem very usual events for the crypto industry. Because every month, at least one Defi platform is facing exploitation by hackers. Zabu finance became the latest in this list. 

On 12 September, DeFiPrime shared the news of the Zabu finance hack attack. 

Through the tweet, we can see clearly that hacker stolen $WETH: 402.9, $WAVAX: 23,157, $PNG: 21,501, $AVE:106,848, $USDT:361,267, $JOE:23,958.93 .

This hack took place on the Avalanche on Avalanche and also this is the biggest hack on the Avalanche, which is worth around $3.2 million. 

Zabu finance, confirmed the Problem that they faced because of a hack attack and confirmed how hackers tricked the platform, through a blog link. 

“Zabu Team Wallet has not sold a single Zabu. We’re under an exploit, possibly from Spore Pool. We’re investigating the exploit. Need help,”

Zabu finance also explained that how hacker tricked the platform to steal funds 

“Transfer Tax mechanism of the protocol to mint tokens causing the price to collapse. The attacker manipulated a vulnerability in the contract used by yield farms to distribute rewards”

PeckShield,  a blockchain Security firm, stated on this attack and said that

“the same bug has happened many times before”. 

Now, the Zabu finance team decided that they will move on with the V2 Stake pool. And also they will give options for those buyers who bought after the hack on V1. 

“..people who lost money pre-hack will get distributed the tokens, and continue to support the protocol if they want. For the late buyer (post-hack), they can also participate in the Farm V2 by staking what they’ve bought in a Zabu V1 Staking Pool”

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