Qubit Finance Suffers $80M Hack With xETH Minting Scheme

Qubit Finance has been the target of the latest high-profile DeFi hack. The decentralized lending and borrowing platform that works on the Binance Smart Chain protocol has recently incurred an $80 million loss.

Hackers have used their address to steal 206,809 Binance Coin (BNB) from the QBridge protocol of Qubit. Meanwhile, in response to the hack, the Qubit Finance team has tweeted a statement notifying their clients about tracing the hacker and the siphoned assets. The post also warned the exploiter to take negotiations before the company takes any stringent actions.

Blockchain security and data analytics company PeckShield has revealed that the reason for the hack is to create an immense amount of xETH (xplosive Ethereum) collateral. xETH  provides a wallet service for secret transactions and brings more privacy to ETH payments. The hackers have created the scheme to drain the whole BNB stored on QBridge.

Moreover, CertiK, a blockchain security firm, pointed out that the deposit option in QBridge was prone to hackers with which they illegally minted 77,162 qXETH assets in Qubit. Rekt database informed that hackers have used such fraudulent activities several times to convert all the hacked assets to BNB, making it the seventh-largest exploit in DeFi.

Despite the crypto Industry broadening, fraudulent activities like protocol exploits, rug-pulls, and hacks have been on the ringside. To add, well-known crypto exchange Crypto.com reported a loss of $34 million worth of cryptocurrencies from 483 users. Nearly $19 million worth of Bitcoin and $15 million worth of Ethereum were also exploited. Several other cryptocurrencies were also affected by the incident.