Ukrainian Exchange KUNA Says Unlike Russian soldiers They Would Return $250k USDC of Stolen BeanStalk Farms Funds.
Ukrainian exchange KUNA has offered to return 250,000 USDC of funds stolen from Beanstalk Farms, a decentralized stable coin project. The exchange, through its Founder, Michael Chobanian, announced on Twitter.
“Hey! We received 250k Usdc from your stolen funds. Unlike Russian soldiers in Ukraine, we do not take other people’s possessions. Please verify your account on http://kuna.io, and we will return the funds. Slava Ukraine!” Chobanian wrote in response to a post by Beanstalk Farms on Twitter.
Hey! We received 250k usdc from your stolen funds. Unlike Russian soldiers in Ukraine, we do not take other people’s possessions. Please verify your account on https://t.co/iLLP0DMs8L and we will return the funds. Slava Ukraine!
— Michael Chobanian (@ChobanianMike) April 18, 2022
Chobanian asked Beanstalk Farms to verify their account on Kuna so that the 250,000 USDC can be returned to them.
In a recent attack, hackers had stolen over $180 million from Beanstalk Farms. The hack, which is said to be the 4th largest in DeFi history, happened when the hackers used the project’s governance system and voted for $182 million to be sent to them.
Blockchain analytics company PeckShield picked up the hacking signal. It said an estimated 24,000 Ethereum and 36 million Bean (the project’s stable coin) were stolen.
KUNA discovers funds
Peckfield says after “obfuscating the funds and substituting them with others”, the hackers were left with $80 million. They started circulating the funds, some of which got to KUNA, and the exchange traced them. The management locked the hacker’s funds and intends to return 250,000 USDC to Beanstalk.
Meanwhile, Beanstalk had offered 10% of the stolen funds to the hackers if they returned 90% of the stolen cryptocurrencies untouched.
“If you will return 90% of the withdrawn funds to the Beanstalk Farms multi-sig wallet 0x21DE18B6A8f78eDe6D16C50A167f6B222DC08DF7, Beanstalk will treat the remaining 10% as a Whitehat bounty properly payable to you,” Beanstalk wrote on Twitter.
If you will return 90% of the withdrawn funds to the Beanstalk Farms multi-sig wallet 0x21DE18B6A8f78eDe6D16C50A167f6B222DC08DF7, Beanstalk will treat the remaining 10% as a Whitehat bounty properly payable to you.
— Beanstalk Farms (@BeanstalkFarms) April 18, 2022
DeFi vulnerability to hacks
DeFi protocols were created to provide solutions to issues surrounding centralized exchanges. However, hackers exploit certain weaknesses in the projects to steal funds in several hacks. In Beanstalk’s case, it was a weakness in the governance system.
Another major hack on Wormhole resulted in the loss of $326 million. The hackers targeted the cross-chain bridge and minted WETH without locking in ETH as is the requirement by the protocol, resulting in the loss.
The most recent and second-largest of the DeFi hacks ever was the Ronin hack, which, like Wormhole, resulted from a vulnerability on the bridge. This led to the loss of over $500 million in Axie Infinity game players’ funds. The U.S linked Ronin hack with North Korea and Pledged $5 Million For Info On North Korean Cyber Operations Following Ronin Network Hack.
As good as DeFi is, these hacks imply a need for attention to the security of protocols to prevent such losses.
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