Multi blockchain-based decentralized finance (DeFi) protocol bZx (BRZX) has been compromised with significant funds siphoned out of its lending ecosystem.
What Happened
The private key held by the bZx development team was compromised resulting in $55 million of cryptocurrencies being stolen, according to a Friday tweet by blockchain cybersecurity firm SlowMist. The project’s team told Decrypt the estimate of “$55m hasn’t been verified internally.”The bZx team said 25 percent of the stolen funds are personal losses from the team wallet and only the Polygon and Binance Coin wallets were compromised with the Ethereum-based DeFi service being unaffected.
bZx was previously compromised two times: in February 2020 the protocol lost $366,000 worth of Ether by one of the first instances of a flash loan exploit. Then, in September 2020 a second attack resulted in a of 30 percent of the funds locked in the protocol, worth $8 million.
Price Action
As of 4 p.m. ET Friday, BZRX was trading at $0.3804 after seeing its price plummet by about 14.90 percent over the last 24 hours according to CoinMarketCap.By Adrian Zmudzinski
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