How a hack, a bug of $80 million, turned out to be the reason for a crypto firm breaking up!

Lately, a bug was reported on a finance platform that then lost millions worth of coins and broke so much that they might not be able to continue their operation. 

The announcement by Bunny Finance and Qubit

On Friday, the team of The Bunny Finance announced in an official post on Medium that the Qubit exploit was calculated to be worth over $80 million. That’s a huge loss for a firm, and now the team can’t operate further at their total capacity.

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So they have decided to dissolve the protocols and hand over the authority to the community. The development team of Bunny Finance and Qubit mutually decided that their protocol would not be working under their control; instead, it would be turned into a decentralized autonomous organization (DAO). 

What happened at Qubit

Qubit bridge worked under Bunny Finance, and its X-bridge was providing swapping of tokens from Ethereum blockchain to Binance Smart Chain. Earlier, the hacker made a successful attempt and managed to explore and exploit an error in the smart contract of the X-Bridge protocol. 

The hacker exploited the error to move the tokens on Binance Chain without even depositing any token as collateral or exchange on Ethereum. The hack was later calculated, and it turned out that the hacker had used $185 million worth of tokens as collateral and moved $80 million worth of tokens from lending pools against it and stole it. 

The hacker put 77,162 qXETH as collateral and borrowed some assets. Those assets included 15,688 wrapped Ethereum making a total worth of $37.6 million, 767 wrapped Bitcoin on binance chain that is BTC-B ($28.5 million, some $5 million worth of CAKE, BUNNY and MDX tokens and stablecoins of with $9 million. 

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After the theft, the protocol can’t continue operating

Qubit Finance had posted on their official Twitter account requesting that the money they stole was the loss of funds that belong to thousands of people. They said if that hack was with the motive of some bounty, then it can be negotiated as they are open for conversation. 

But their recent announcement seems like nothing worked out, and hence they have to stop operations of the protocol. 

As the announcement put, from now on, the community will be taking care of decision making for various purposes, including upgrading contracts and altering fee structure, etc. The protocols will be modified according to DAO working, and hence the development team will shut down the vaults on the Bunny platform.