BSC-Based DeFi Project Qubit Finance Exploited for $80 Million in BNB

The Binance Smart Chain-based protocol Qubit Finance reported being hacked for $80 million worth of BNB. The attackers managed to create the illusion that they had deposited large amounts of xETH collateral.

  • The blockchain security resource PeckShield reported last night that the DeFi project could have become a victim of a security breach. Later on, the company added that stolen funds equaled $80 million worth of Binance Coin.
  • Qubit Finance confirmed the exploit, saying that the hackers “minted unlimited xETH to borrow on BSC.”
  • After updating users on Twitter, the team behind the project said it had also contacted the perpetrators to “offer the maximum bounty.”
  • “The exploit and loss of funds have a profound effect on thousands of real people. If the maximum bounty offer is not what you are looking for, we are open to have a conversation. Let’s figure out a solution.” – reads the message sent to the attackers.

  • Qubit Finance’s report on the matter explained that the perpetrators called the QBridge deposit function on the Ethereum network. QBridge is a cross-chain platform allowing users to collateralize their assets without moving them from one chain to another.
  • Aside from contacting the perpetrators, Qubit has disabled Supply, Redeem, Borrow, Repay, Bridge, and Bridge redemption features and will cooperate with “security and network partners, including Binance.”
  • Another report from security company CertiK showed that the attackers essentially tricked Qubit’s protocol into showing that they had deposited funds without actually making such a transfer.

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