On Thursday, hackers compromised Qubit Finance’s protocols, a Decentralized Finance initiative (DeFi), and stole $80 million in cryptocurrency, making it the most well-known crypto theft of 2022 to date.
Following the event, the firm has been pleading with hackers to restore stolen monies in order to investigate the problem, as many people have lost their hard-earned money.
In a tweet on Friday, the business confirmed the hack and stated that hackers minted a large number of Xplosive Ethereum to borrow on Binance Smart Chain (BSC).
The affected company approached the hackers directly and requested that they bargain in order to minimize the loss of community. Furthermore, the corporation offered the hackers a bug bounty of $250,0000 in exchange for the recovery of stolen assets.
In a tweet, the Qubit Finance team stated:
“Before taking any further action, we recommend that you bargain directly with us.” Thousands of actual people are affected by exploitation and financial loss. If the bounty offer isn’t what you’re looking for, we’re willing to talk about it. Let’s figure out what’s going on.”
Certik, a blockchain security firm, investigated the incident and discovered that hackers transferred cryptocurrency to several addresses.
Certik stated in a report;
“For non-technical readers, the attacker essentially exploited a logical mistake in Qubit Finance’s code, allowing them to insert malicious data and withdraw tokens on Binance Smart Chain when none were placed on Ethereum.”
Qubit Finance is offering a bug bounty of $1 million to hackers.
Qubit Finance is a cryptocurrency-focused platform that acts as a link between multiple blockchains in order to transfer digital currencies. To put it simply, it allows users to withdraw in another coin rather than deposit it.
Qubit’s team is in constant touch with hackers in an attempt to mitigate the loss in some way. So, once again, on January 29, they offered hackers a large sum of 1 million as a bug reward.
Qubit Finance upped the bug bounty sum in another tweet and noted;
“We’re confident you can get away with $80 million. Please keep in mind that there are many people, families, and stories involved. Accept a well-earned bounty of $1,000,000, which will someday be one of the highest in history.”
Since the launch of BSC in 2020, hackers have been targeting the DeFi platform. Venus Finance, for example, lost $88 in a cyberattack in May 2020, while Uranium Finance was hacked for $50 million in April 2021.
Crypto crimes have historically been on the rise. According to Chainalysis, a blockchain research organization, Cyber Criminals stole $14 billion in 2021, a 79 percent increase over the previous 7.8 billion in 2020.