Trader allegedly saw over 5000x gains after Ankr protocol hack

Because the BNB Chain-based protocol Ankr was exploited and the hacker dumped Ankr Reward Bearing Staked BNB (aBNBc) tokens, a dealer took benefit of the value discrepancies to show $2,879 into $15.5 million. 

As beforehand reported by Cointelegraph, safety agency Beosin advised that the multi-million greenback exploit might have come from vulnerabilities within the good contract code and compromised personal keys because of a technical improve. Then, the hacker minted and dumped 20 trillion aBNBc tokens, considerably decreasing the value of aBNBc.

As this occurred, a dealer reacted rapidly and took benefit of a possibility. Going via on-chain information, evaluation platform Lookonchain just lately shared how a dealer allegedly managed to achieve $15.5 million by making their approach via the Helio Protocol platform. Based on Lookonchain, the dealer purchased 183,885 aBNBc with solely 10 Binance Coin (BNB) after the Ankr exploiter dumped aBNBc.

After this, the dealer deposited the aBNBc into Helio Protocol and used the funds as collateral to borrow 16 million Helio Protocol (HAY) tokens. Ultimately, the dealer exchanged HAY for 15.5 million Binance USD (BUSD), incomes a 5,209 occasions revenue from their authentic capital.

Aside from losses sustained from the commerce, the exploit might have additionally affected the Helio platform’s complete worth locked (TVL). Earlier than the assault, the HAY stablecoin held round $87 million in TVL. Nonetheless, on the time of writing, decentralized finance (DeFi) information tracker DeFiLlama reveals that HAY now has $zero TVL.

In an announcement to its group, Helio Protocol assured customers that their belongings are protected and all of their staked BNB are throughout the validators. At current, the protocol suspended all its features and requested HAY holders to chorus from any transactions.

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After just lately asking decentralized exchanges (DEXs) to halt buying and selling, Ankr protocol has talked about that will probably be reissuing aBNBc tokens. The platform promised that it’ll assess the state of affairs and compensate affected customers.

Further particulars:
We now have been in contact with the DEXes and instructed them to dam buying and selling. We’ll reissue tokens sooner or later after we assess the state of affairs.

— Ankr (@ankr) December 2, 2022

In the meantime, Crypto change Binance paused Ankr token withdrawals and froze $three million value of belongings that the hacker moved to the buying and selling platform.