Ankr, a decentralized finance (DeFi) technology based on BNB Chain acknowledged through Twitter that the aBNB token had been misused and that they were coordinating with exchanges to stop trading the compromised token right away.
The exploiter was able to mint 20 trillion Ankr Reward Bearing Staked BNB (aBNBc), a token with rewards for BNB staked on the protocol.
The exploiter later used services like Uniswap, and numerous bridges to swap and disguise the funds in order to earn about $5 million worth of USD Coin, claims a tweet from on-chain analysis company Lookonchain.
Beosin blockchain security firm noted that in a tweet, according to data from CoinMarketCap, the mass minting episode led the price of aBNBc to drop 99.5% from $303.89 to $1.53 in a couple of hours. This was possible as a result of the smart contract code’s weaknesses and compromised private keys, which may have resulted from a technological upgrade by the Ankr team.
Binance exchange in addition to stating that user funds are not in danger, Binance said that its team is collaborating with pertinent parties to look into the situation further. Additionally, the exploiter’s wallet address has been blacklisted, according to the BNB Chain Twitter page.
Ankr stated that Currently, there is no risk to any underlying assets on Ankr Staking, and all infrastructure services remain unaffected.
To any legitimate aBNBc holders before to the exploit, we will take a snapshot and reissue ankrBNB. While aBNBc and aBNBb will no longer be redeemable, the ankrBNB token will still be used. In order to fully compensate the liquidity providers who have been harmed by the exploit owing to the draining of the liquidity pool, Ankr will buy 5 million worth of BNB.
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