Hackers Steal Crypto Worth $80 Million From Qubit Finance.

Hackers Steal Crypto Worth $80 Million From Qubit Finance.
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Lately, hacks have become common in the crypto world. Decentralized Finance (DeFi) platform Qubit Finance is one of the latest victims. The company acknowledged the hack on Twitter. Hackers stole approximately $80 million from Qubit Finance, built on the Binance Smart Chain. This hack is considered the largest heist of 2022, with 2,06,809 BNB drained from QBridge protocol so far. According to Qubit Finance, the company is working towards security with its network partners. Security firm PeckShield has stated that the current stolen assets are worth $80 million. After auditing Qubit's smart contracts, PeckShield also said that QBridge was hacked to mint a "large amount of xETH collateral", which was further used to drain the entire amount of BNB held on QBridge.

Platforms such as Qubit Finance prefer to use smart contracts instead of relying on third parties to provide customers with financial services like borrowing, lending and trading. QBridge allows users to collateralize their assets on different networks without moving their investments from one chain to another. According to the "incident analysis" report by security firm CertiK, the attacker used a deposit option in the QBridge contract and fraudulently minted 77,162 qXETH, which is an asset representing ether bridged via Qubit; by doing this, attackers tricked the protocol by showing they had made a deposit when they didn't. The attackers repeated this process several times by converting all the assets into Binance coins. Qubit has issued a statement informing their clients that the impacted assets are being monitored. Their blog post mentions that they have also contacted the hacker to give a maximum bounty offer. Meanwhile, Qubit's QBT is down by 25% within 24 hours, according to CoinGeko.

 With the rise in the number of investors in the crypto market, there has been a gradual rise in crypto scams and thefts. According to Crystal Blockchain's report released in December 2021, there were 115 security attacks last year, 40 of them targeting DeFi protocols and 26 related to fraudulent schemes leading to the theft of around $10 billion worth of crypto assets.