Once again, a decentralized finance (DeFi) project is the target of an attack by hacker(s). This time it concerns Zabo Finance (ZABU), a new DeFi application on the rapidly emerging blockchain network of Avalanche (AVAX).
A whopping $3.2 million worth of cryptocurrencies was stolen from the platform when someone exploited a flaw in the code. The news came out on Saturday when Zabu’s team asked for help via Twitter:
Zabu Team Wallet has not sold a single Zabu. We’re under an exploit, possibly from Spore Pool. We’re investigating the exploit. need help @pangolindex @traderjoe_xyz @avalancheavax pic.twitter.com/lKysK87InM
— Zabu Finance 🔺 (@zabufinance) September 11, 2021
The hacker stole 402.9 wrapped ethereum (WETH), 23,157 wrapped avalanche (WAVAX), 21,501 pangolin (PNG), 106,848 avaware (AVE), 361,267 tether (USDT) and 23,958.93 trader joe (JOE), worth about $3.2 million, stolen.
In addition, 4.5 billion ZABU tokens were looted from a contract and dumped on the market. It may be the first time a major attack on Avalanche has taken place, but research firm Peckshield says it’s not the first time this attack has occurred. bug has been abused:
The same bug happened many times beforehttps://t.co/atpqppDnAv https://t.co/QeiPk8XQxj
— PeckShield Inc. (@peckshield) September 12, 2021
The value of the Zabu token completely collapsed on Saturday. The price dropped 99.6% from $0.00405480 to $0.00001522 within hours. Zabu’s team has since announced that it will try to cover the losses of victims.
That could be quite a job as several investors dumped their tokens shortly after the news came out and other investors just bought the dip. At the time of writing, the price has risen again by 30% in an hour, but that is still almost 99% below the level before the crash. AVAX is also up 200% in the past month.
Another such attack on Cream Finance recently took place, when even $19 million worth of crypto was stolen. In fact, last month saw the largest DeFi hack ever, when a staggering $600 million worth of crypto was stolen, but later returned.