Smart contract project QAN platform announced on Tuesday that its “bridge smart contract” is offline due to a hack. The bad actor siphoned about 1.4 billion of its token, QANX, causing a 92% drop in the token price.
QAN platform is a blockchain-based project that promotes building “quantum-resistant” smart contracts. The platform rewards developers in QANX for writing “high-quality code” that can be reused by other developers.
QANX Drops by 92%
On-chain data revealed that the hacker stole over 1.4 billion worth of QANX (approximately $1 million). Note that the stolen funds represented about 50% of QANX’s entire supply of 3.3 billion.
After stealing the funds in QANX, the bad actor then converted over 80% of the funds into BNB, worth $837,500. The remaining fund, which was $328,000, got converted into ETH. The hacker used Tornado Cash and Uniswap as their exit routes.
Following the voluminous quantity of QANX that got withdrawn at once, the price of the token plummeted. At the time of writing, QANX traded at $0.00087, representing about a 96% drop.
QAN Platform Responds
QAN platform commented on the exploit only after being notified by blockchain security firm PeckShield on Twitter.
Shortly after the exploit occurred, the platform notified its users that they should not perform any transaction that involves the token. It further noted that investigations were underway to retrieve the stolen funds.
As a way to compensate investors who currently sit in losses, the project noted that it will likely replenish its users. It mentioned that it would take a snapshot before the hack occurred to know the holdings of several users, and afterward conduct an airdrop to reimburse the investors.
Meanwhile, crypto hacks continue to be on the rise. Last week, the hack of the popular BNB chain made headlines. Following an attack on its cross-chain bridge, BSC Token Hub, about $100 million worth of crypto was siphoned by bad actors.
Last month, the DeFi protocol New Free DAO recorded a loss of $1.25 million worth of funds to bad actors. The hacker exploited the project using a flash loan attack.
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