Ankr Offers Compensation Plan for $5 Million Hack Victims
The team’s fast response prevented Ankr from going below after a security compromise.
Ankr discovered a security compromise on the project on December 1 in which malicious actors gained inside access and stole tokens. Hackers were able to acquire the private developer key and edit the smart contract for aBNBc, Ankr’s BNB liquid staking token, according to a report by the team.
This change offered bad actors the ability to generate an endless number of tokens from thin air by exploiting an infinite flaw. Over sixty trillion tokens were created, with the tokens being converted to the USDC stablecoin by hackers.
Before the transactions were detected, $5 million worth of USDC was transferred from Binance Smart Chain to Ethereum, possibly saving the project a lot. Ankr said in its report that they “notified known exits to apply their emergency preparations,” which suspended trading.
To reduce the loss of funds, further measures were implemented, including the adoption of a new key to secure smart contracts and the update of all systems to “temporarily halt the transfer of the underlying collateral for safety.” The team highlighted that liquidity providers for decentralized exchanges supporting the impacted currencies have been alerted of the move.
“Ankr will acquire $5 million worth of BNB and utilize the funds to repay liquidity providers impacted by the exploit’s draining of liquidity pools,” the company stated in a statement.
Ankr states that it will immediately cease the impacted tokens and will utilize a snapshot to identify the affected liquid supplier. The initiative assuaged customers’ concerns by ensuring that their monies and underlying assets are secure and that they “would maintain their previous positions.”