Crypto Theft: Attack on Beanstalk: Hackers steal cryptocurrency for millions in seconds | news

Crypto thieves steal $ 182 million in stack coins

The hackers used a very unusual trick

The hands of the bean stalk are bound

$ 182 million in cryptocurrencies stolen

Despite all security measures, the digital world of cryptocurrencies is in no way immune to the input of criminals. The latest victim of a spectacular robbery was the developers of the Beanstalk protocol, which has only been around for a few months. As the Vice platform reports, the still very young stablecoin project was hijacked by hackers for cryptocurrencies worth $ 182 million within seconds. One of the founders commented on this with the simple phrase “We are fucked” – “We are screwed together.” The core of Beanstalk’s business model is stablecoin Bean, the value of which must be maintained at the level of around one US dollar. As the FAZ explains, the basis of this currency is a centralized fund in which users deposit cryptocurrencies as stocks and thus provide Beanstalk loans, so to speak. This fund was the target of cyber thieves.

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The hackers used an extraordinary trick

The way the hackers gained access to the exchange’s cryptocurrency is very unusual in this case. With decentralized blockchains, it is common for users to decide on changes to the code that forms the technical basis of the digital currency. Anyone who deposits cryptocurrencies with Beanstalk will receive exactly as many shares as they own units of the digital currency. For example, if you own 1 percent of all “beans”, you also have 1 percent of the voting rights. At this point, the hackers started and initially borrowed nearly a billion US dollars in the form of various digital currencies in the form of a “quick loan”. With the money thus made available to them, they then obtained a two-thirds majority in Bean, giving them two-thirds of the voting rights.

Now the real coup for the crypto robbers began. As the FAZ explains, the thieves, with their newly won majority, were able to transfer all $ 182 million deposits directly into their own pockets. If you deduct the repayment of the quick loan plus fees, the hackers are left with a huge sum of 80 million dollars. According to technology portal The Verge, this entire process took just 13 seconds.

Beanstalk is left as a helpless victim

The operators of Beanstalk now have virtually no chance of recovering the stolen crypto assets. From a legal point of view, the case is extremely difficult. Strictly speaking, the vulnerability that hackers exploit is not a security hole at all. The stock market log had no guarantees against a short-term takeover because the operators of Beanstalk simply did not foresee an attack of this type.

Beanstalk founders announced on their Discord channel that the stolen cryptocurrencies were likely to be irrevocably lost. According to a blog post from the operator, they want to set up stablecoin again in a secure version. All you have to do is appeal to the robbers. According to the FAZ, Beanstalk offers hackers that they can keep 10 percent of the stolen assets as a sort of finder fee to uncover the vulnerability if they pay the remaining 90 percent back.

Thomas Weschle / Editor finanzen.net

Image sources: BeeBright / Shutterstock.com, GlebSStock / Shutterstock.com

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