Crypto hacks are a great way to take advantage of crypto currencies, but you need to know how to do them properly. In this article, we’re going to walk you through a few of the best ways to get started. We’ll cover a variety of crypto hacks, from using the Poly Network to buying and selling Beanstalk Farms.
Beanstalk Farms
Beanstalk Farms, a decentralized finance protocol based on Ethereum, suffered a security breach this week. An unknown hacker stole $182 million in cryptocurrency from the platform.
The attacker gained control of 67% of the platform’s governance token. The platform’s stablecoin, Bean, dropped 80% in value.
A flash loan attack allowed the hacker to steal the tokens. Flash loans are a type of decentralized financing that allow users to borrow large amounts of crypto for minutes. They also allow lenders to avoid collateral, as the borrower repays the money in one transaction.
According to cybersecurity firm PeckShield, the hackers used flash loans to exploit vulnerabilities in the protocol’s governance system. PeckShield estimates that the attack took 13 seconds to execute. At the time of the hack, the platform’s native crypto tokens were valued at $180 million.
Ronin
Ronin, a crypto sidechain, has been the target of a hack. This is a significant development for the platform, as it powers a popular video game called Axie Infinity.
The hack was detected on Tuesday. The attackers gained access to Ronin’s network and stole 25.5 million USDC stablecoin. They then swapped it for ether on unregulated decentralized exchanges. These funds are now worth $615 million.
The attack was discovered when a user was unable to withdraw five ETH. After an investigation, the company confirmed the incident.
The heist involved the use of stolen keys to validate transactions on the Ronin chain. Additionally, the attackers exploited validators in the game, including a third-party validator operated by the Axie DAO.
As a result of the hack, the chain has been compromised, and its validity will need to be reestablished. Meanwhile, the network has decided to increase the minimum number of validator nodes required to make a transaction.
Aave
If you want to know why Aave has been hacked, you don’t have to look very far. It’s a decentralized lending protocol that allows users to borrow and lend cryptocurrencies without using personal identification.
The trick was to find a way to make money from the Aave lending protocol. Avi Eisenberg, a trader who recently made a splash for shorting CRV, borrowed 40 million curve tokens from Aave. He then used the funds to buy a governance token, enabling him to control the protocol.
In the process, he drained the Beanstalk Farms stablecoin protocol of its $150 million worth of crypto, and also pocketed an impressive $6 million. But that’s not the only bad news for the Aave-based financial service.
It may have been a hoax, but the Aave Finance flash loan, a little-known feature of the protocol, was exploited by a pair of malefactors. Using the protocol’s wallet functions, they managed to obtain a flash loan. That’s the quickest method to get funds from a crypto lending platform.
Poly Network
The Poly Network crypto hacks occurred earlier this month. According to preliminary investigation, the hackers exploited a security hole in the smart contract. This gave them access to tokens locked in the contract.
Although the Poly Network credited the attack with a new high, it is not the first significant security breach in the nascent DeFi space. In fact, BlockSec, a China-based firm, said the Poly Network hack was probably triggered by a leak of the private key of a Keeper.
According to the aforementioned press release, the Poly Network hack was more than just a heist. It also brought to light concerns about the reliability of decentralized finance promises.
The hackers stole over 610 million dollars worth of digital currency, making it the largest crypto hack in history. While the hack is not as large as the one that took down Coincheck in August, it did prove that a hacker can execute a high volume transaction.
Solana-based lending platform
Solana-based lending platform Mango Markets was hacked on Wednesday, August 2. The hacker managed to buy millions of dollars worth of SOL tokens through an under-collateralized loan. These funds were then stored in the hacker’s Solana wallet. He then sold the tokens.
Later that day, a hacker also managed to breach the Nirvana Finance protocol, which was designed to enable users to earn 100% annual yields. He then sold the tokens to market demand.
Afterwards, the total value of assets locked on the Solana network dropped to $985 million. Users have been concerned that this could have a negative impact on the ecosystem.
According to OtterSec, a blockchain auditing firm, the hacker manipulated the price of the oracle that manages the pools. This allowed him to drained USDC and other Solana-based tokens from the network wallets.
