NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

1Inch Exchange Co-Founder Disputes Claims bZx Attackers Stole $8m in DeFi Exploit

Samuel Wan
Samuel Wan
4 years ago
3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

DeFi lending protocol bZx suffered another attack last night, the second in seven months.

This time, faulty code was blamed for an exploit that allowed hackers to duplicate assets, or increase their iTokens balance without the appropriate collateral.

Reports are circulating that hackers stole cryptocurrencies worth $8 million. But Anton Burkov, Co-founder of 1inch Exchange, analyzed the relevant DeFi explorer, removing duplicate items, as well as bZx “admin drainages”, to conclude those reports are greatly exaggerated.

According to Burkov, the amount lost to the duplication exploit is closer to $1.7 million. Further analysis carried out by Burkov pinpointed the exploit to nine transactions on the iETH lending token, worth approximately 4.7k Ethereum in total.

“We found 9 exploiting transactions on $iETH lending token with 101778 $iETH tokens duplicated (worth ~4.7K $ETH) // @DuneAnalytics”

DeFi protocol bZx lost $1.7 million in latest exploit

Source: twitter.com

In response to the exploit, bZx issued a statement saying investors are covered by an insurance fund paid for through treasury funds and protocol cashflow.

What’s more, in the statement, bZx spun the incident to demonstrate the soundness of the protocol.

“As we have demonstrated before, the system is capable of absorbing black swan events that would otherwise negatively impact lender assets. Thanks to a protocol design that anticipates and accounts for tail events, this incident is surmountable. The debt will be wiped clean and the protocol will move forward unimpeded.”

However, considering the number of high profile exploits and exits happening in DeFi of late, this latest exploit has done little to legitimize DeFi.

DeFi Hackers Exploit Duplication Bug

A postmortem of what happened shows several failings. Initially, Lead Developer at bitcoin.com, Marc Thalen, raised the alarm by tweeting his discovery of the DeFi duplication exploit.

However, due to time differences, no-one at bZx was able to respond straight away.

1/4 Last night I found an exploit in BRZX. I noticed that a user were capable of duplicating “i tokens”. There was 20+ million $ at risk. I informed the team telling them to stop the protocol and explained the exploit to them. At this point none of the founders were up.. pic.twitter.com/MdJqOH2IPu

— Marc (@0x00Marc) September 14, 2020

In the meantime, Thalen then went on to test the exploit himself. He said that he created a 100 USDC loan from which he was able to claim 200 iUSDC.

“2/4 I tried the exploit out. I created a loan using USDC (100 USD). From this I retrieved iUSDC. I then sent this to myself practically duplicating the funds. I then created a claim for 200 USD.“

By the time the bZx team was aware of the problem, the attacker had already drained a substantial amount of DeFi assets.

In response, bZx paused the minting and burning of iTokens as they investigated the claims. The team then applied a patch to the iTokens contracts, correcting duplicate balances at the same time.

Following that, normal activity resumed.

What Next For bZx?

The bZx protocol was attacked in February in a flash lending exploit. Attackers were able to steal $350k by manipulating the Uniswap price feed for wrapped Bitcoin.

However, bZx denies the incident came about as a result of using Uniswap price feeds.

https://twitter.com/bZxHQ/status/1228717425387950080

At the time, bZx was ranked as the 7th largest protocol by total value locked (TVL). But following the flash lending exploit, it began slipping down in the DeFi rankings.

Today, defipulse.com ranks bZx as the 37th biggest by TVL, a substantial fall in standing.

Source: defipulse.com

In a bid to reassure DeFi investors, bZx Co-founders Tom Bean and Kyle Joseph Kistner will field questions about the incident later tonight.

https://twitter.com/bZxHQ/status/1305402022892466176

But the real concern is whether today’s exploit will lead to a further drop in standing.

In terms of token price, BZX is down 30% on the day. However, will the duplication exploit lead to further price declines?

Daily price chart of DeFi protocol bZx

BZX daily chart with volume. (Source: tradingview.com)
Tweet123Share196ShareSend
Samuel Wan
Samuel Wan

Samuel Wan

Samuel Wan is passionate about different cultures and eating good food. He has years of experience working in business and finance — a burgeoning interest in Bitcoin and cryptocurrencies since 2017. UK based.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Bitcoin

Bitcoin Exchange Outflows Continue To Rise: Investor Confidence At An All-Time High?

The price of Bitcoin (BTC) has not been particularly impressive over the weekend, which has been a somewhat consistent theme...

Opeyemi Sule 13 hours ago
Bitcoin

Bitcoin Meets Heartbreak In Drake’s Latest Track—Details

Grammy‑winning artist Drake has just put out a new track called What Did I Miss? that makes a clear link between...

Christian Encila 14 hours ago
Bitcoin

Are Bitcoin Retail Traders Back In The Market? On-Chain Data Suggests So

Bitcoin started the month of July with a convincing rally to the upside, suggesting a sustained bullish sentiment amongst investors...

Opeyemi Sule 16 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

本月最熱門迷因幣價格反彈:哪些冷門項目有望暴漲100倍?

Mark Mak 9 minutes ago
Ethereum Price Pushes Higher

Ethereum Price Pushes Higher — Eyes Set on Next Major Barrier

Aayush Jindal 3 hours ago
Ethereum

Ethereum Ready For Explosive Breakout: $5,791 The Minimum Target–Analyst

Scott Matherson 11 hours ago

Premium Sponsors

Press Releases

  • Make $8,000 a day in stable passive income easily –...

    13 hours ago
  • SunnyMining——A passive income tool that allows ordinary...

    14 hours ago
  • Cryptocurrency is the best way to get rich quickly, easily...

    1 day ago
  • XRP Cryptocurrency × Dogecoin Mining: HASHJ launches...

    2 days ago
  • Koja kriptovaluta ima veći potencijal za stvaranje milijunaša XRP ili Shiba Inu

    Koja kriptovaluta ima veći potencijal za stvaranje...

    2 days ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.