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AllianceBlock (ALBT) fell more than 65% after the BonqDAO exploit — what will happen to users’ money?

Andrew Zhoao

News editor

Feb 2, 2023 at 08:14

Unknown hackers withdrew 114M AllianceBlock tokens (ALBT) and 98M Bonq Euro (BEUR) stablecoins from the Bonq protocol. As a result, the ALBT token fell by more than 65% and BEUR lost its peg to the euro by more than 40%. The total loss at the time of writing is ~$66M (~120M at the time of the theft).

How did this happened?

While most cryptocurrencies rose after news of the Fed’s statement regarding the rate, AllianceBlock’s native token began to move in the opposite direction.

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BonqDAO representatives explained on Twitter that hackers managed to manipulate the value of ALBT. The post says the fraudsters:

  • increased AllianceBlock’s native coin price;
  • then minted a large amount of BEUR stablecoin;
  • then exchanged BEUR for other tokens;
  • and reduced the value of ALBT.

Experts explain the reason for such hacks by the fact that the DeFi industry is still young, and there are still many breaches in smart contracts, which hackers exploit. To successfully carry out the latest attack, an unknown attacker needed only to gain access to one of the smart contracts.

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It is also reported that the attack did not affect other BonqDAO pools. In addition, due to the low liquidity of the assets, the hacker was not able to convert all of the stolen funds in Ethereum and DAI, but only $1.7. However, he still has most of the funds in his account.

Crypto Twitter mostly expresses words of support for the project.

Also, until this situation will be resolved, AllianceBlock developers have paused the transactions, and made a snapshot is a screenshot of all the transaction on the blockchain at the time of the snapshot. to release the tokens and return users their funds.

What is Alliance Block?

AllianceBlock is a blockchain platform that aims to provide a bridge between traditional and digital capital markets. The goal is to create a decentralized capital market. In turn, AllianceBlock Protocol is a decentralized and blockchain-independent Level 2 that automates the transformation of any digital assets into a product suitable for banks.

Over the last 24 hours, ALBT has fallen 62,47% — from $0.1058 to $0.04031. And the BEUR stablecoin after losing its peg to the euro by 42,57% and is trading at $0.6335.

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