Qubit Finance Appears to Have Been Hacked for $80 Million in the Most Recent Defi Exploit

Qubit Financial is the latest decentralised finance initiative to fall victim to hackers, as tales of massive losses trickle in.

At the time of publication, details are few, however, it seems that the Qubit Finance Defi protocol has been abused.

The team announced on their Twitter account in the early hours of January 28 that a hostile actor has abused the protocol to manufacture a limitless number of tokens on the Binance Smart Chain-based platform:

“[wallet address] abused the protocol.” The hacker created an infinite supply of xETH to lend on BSC. The team is presently coordinating next actions with security and network partners.”

PeckShield, a corporation that specialises in blockchain security and smart contract audits, verified the attack, stating:

“It seems as if @QubitFin’s QBridge has been hacked in order to generate a large quantity of xETH collateral and drain the pool’s money of about $80M. Please note that we audited the Qubit lending portion of the transaction, not the QBridge!”

According to the most recent update from the DeFi protocol team, they are still tracking the exploiter and monitoring impacted assets, and have contacted the hacker to offer the maximum reward.

RugDoc, a feed that tracks DeFi vulnerabilities, said that this was the third or fourth time that PancakeBunny protocols based on BSC have been hacked. According to BSCscan, the address used to abuse the protocol had 206,809 BNB ($79.7 million).

CertiK Security stated that the hacker used the QBridge contract’s deposit function but did not make a deposit. The Ethereum QBridge recorded the deposit event and generated $qXETH for the BSC hacker.

“Because the ‘deposit’ and ‘depositETH’ methods in the #QBridge contract emit the same event, the QBridge considers the Deposit event as a depositing #ETH event.”

The operation was done numerous times to augment the loot, which reached roughly $80 million, ranking this hack sixth in the Rekt database maintained by DeFiYield.

Qubit Finance is a lending protocol that has been developed to provide lending as a service for the Binance Smart Chain. Its native QBT token has fallen 31% in the last few hours to an all-time low of $0.004, down 99.2 percent from its September all-time high of $0.58.

A week after Brinc Finance was hacked for $1.1 million last month, the Grim Finance protocol lost $30 million in an exploit.

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