Another DeFi Exploit: Hackers Drain Over $80 Million From Qubit Finance 

Binance Smart Chain-based lending protocol, Qubit Finance, has lost over $80 million worth of crypto assets to hackers, according to a discovery by blockchain security firm, Peckshield.

“It seems the QBridge of @QubitFin  is hacked to mint huge amount of xETH collateral and drain the pool funds about $80M. Please note we audited the Qubit lending, not the QBridge! More to come,” the security firm tweeted.

The DeFi protocol then confirmed the attack a few hours later on its Twitter handle, noting that the hacker carried out the exploit by minting an unlimited amount of xETH to borrow on BSC, adding that the team is currently working with other partners including Binance to resolve the issue.

“The protocol was exploited by;0xd01ae1a708614948b2b5e0b7ab5be6afa01325c7The hacker minted unlimited xETH to borrow on BSC.The team is currently working with security and network partners on next steps.We will share further updates when available,” the protocol said.

Following the hack, Qubit Finance suspended its services including Supply, Redeem, Borrow, Repay, Bridge, and Bridge Redemption until further notice. 

Same Team, Different Hack

Qubit is a DeFi lending platform developed by the team behind Pancake BUNNY, a yield aggregator and optimizer that once suffered a smart contract exploit that led to the loss of millions of dollars worth of assets in May 2021. 

As reported at the time, the hackers drained about $45 million from Pancake BUNNY through a flash loan attack. 

Increasing DeFi Hacks

Hackers have turned the DeFi space into their playing ground. The sector has suffered some of the biggest exploits in the crypto industry, leading to the loss of several billions of dollars. 

Last December, Coinfomania reported that DeFi protocol Grim Finance suffered a $30 million hack carried out via a re-entry exploit.

In 2021, a total of 44 DeFi hacks occurred which amounts to $1.3 billion losses in investors funds – a huge increase of over $500 million when compared to 2020, according to research from security-focused firm CertiK.

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