Beanstalk has been built on Ethereum, and it is a decentralized credit-based stablecoin protocol. Beanstalk leverages its credit system to create a blockchain native asset that is liquid and decentralized.
Beanstalk encourages the participation of its community members to maintain the peg and governance without involving the everyday users of the protocol. Beanstalk issues Beans, stalks, and Seeds as ERC-20 standard tokens. The protocol constantly seeks participation to maximize price stability and create a more diverse decentralized community.
Beanstalk Stablecoin Protocol Hacked
According to reports, Beanstalk became a victim of a hacking attack on April 17, 2022. The hacker reportedly took away wealth worth $76 million, and experts estimate that the actual loss could be higher than the figure made public.
Hackers have deployed flash loan techniques to target the users and drain all the funds in the morning. The attack was followed by trading USDC, DAI, and USDT on Uniswap for Ethereum, which came to an approximate value of $76 million, or 24,830 units of Ethereum.
It is believed that the hacker could be transferring funds for a long time through Tornado Cash, an Ethereum mixer that hides the transaction history.
Various platforms have experienced a rise in hacking attacks in recent years. The most affected segment has come out to be the DeFi sector of blockchain technology. The current year has been tough on DeFi, with the first quarter itself being the worst even though eight more months remain.
The hacker’s wallet address has been identified, as per the reports. Sources close to the investigating agency stated that the wallet address of the thief had been formally added by the Treasury’s Office Of Foreign Assets Control to the Crypto list that the North Korean Lazarus Group owns.
Lazarus Group is notoriously famous for funding the nuclear program of North Korea.
North Korea has reportedly been involved in various hacking attacks on Crypto networks. The country is said to be behind the theft of $625 million from the Ronin Network.
Ronin, a cross-chain payments bridge protocol, allows the users to swap their Cryptocurrency to the one needed in the NFT game. Ronin pioneered the trend of doing away with the transaction fee by participating in its process of locking the collateral into the bridge.
Reports say that the first quarter of 2022 has seen a theft of $1.3 billion. It is estimated that almost all of it could have been from the DeFi sector.
Crypto hacks are now more familiar, with numbers growing every quarter. Beanstalk is an example of what hackers are capable of performing. DeFi networks are on the alert, and they are expected to tighten their respective security layers.
The case of the Beanstalk Stablecoin Protocol remains under investigation. More updates are awaited soon for the members of the community.