$182 million stolen from stablecoin provider Beanstalk Farms in flash loan attack

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Credit-based stablecoin provider Beanstalk Farms has been hacked, with an estimated $182 million in cryptocurrency stolen.

The attackers used a flash lending attack to gain access to the Beanstalk network. A flash loan attack is a type of decentralized finance attack where a cybercriminal takes out a flash loan – a form of unsecured loan from a lending protocol, and then manipulates the price of a crypto asset on an exchange for the sell quickly on another. Coinmarketcap notes that flash loan attacks are the most common types of DeFi attacks because they are the cheapest to perform and the easiest to avoid.

The amount stolen by the hacker understand 24,830 Ethereum and over 100 million Bean tokens. The Bean token is Beanstalk’s stablecoin and is pegged to the US dollar at 1 Bean equals $1. After the hack, Bean’s price crashed to 26 cents.

In response to the attack, Beanstalk Farms post that they are investigating the attack and will make an announcement to the community as soon as possible. In a tweet laterthe company said it was committed to every effort to move forward.

“As a decentralized project, we are asking the DeFi community and on-chain analysis experts to help us limit the exploiter’s ability to withdraw funds via CEX,” the company said. “If the exploiter is open to discussion, so are we.”

Of the stolen Ethereum, the person(s) behind the attack donated the equivalent of $250,000 to Ukraine, with the rest of the stolen ETH sent to a tumble service called Tornado Cash. A cryptocurrency tumlber is a service that mixes potentially identifiable or tainted cryptocurrency funds with others to hide the fund’s original backtracking trail. With the hacker’s attempts to cover his trail with stolen Ethereum, it’s highly unlikely that this is someone testing Beanstalk’s security – as was the case with Poly Network, compared to someone else. one that targeted the company for profit.

The theft of funds from Beanstalk Farms follows the theft of $615 million in cryptocurrency from the Ronin Network, the blockchain platform that runs the popular gambling game to earn Axie Infinity.

Image: Beanstalk Farms

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