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BadgerDAO Hack Sees $120M Worth of User Funds Drained

BadgerDAO Hack Sees $120M Worth of User Funds Drained

One user address lost 900 BTC in a single transaction

BadgerDAO, an Ethereum-based platform aiming to bring Bitcoin to the DeFi ecosystem, has suffered a serious hack earlier today. Exploiters managed to steal $120 million worth of user funds in various tokens, predominantly Wrapped BTC. 

In a tweet, the BadgerDAO team confirmed that their platform was hacked. The development team is investigating the hack, and in the meantime, they suspended all activity on BadgerDAO smart contracts. 

BadgerDAO

The explоiter wallet currently contains only about $17.000 worth of ETH. However, a quick Etherescan check shows that the wallet has completed a total of 183 transactions, distributing funds to numerous other wallets. According to PeckShield, a blockchain security company, more than 2000 BTC and 151 ETH ($120 million) have been distributed among these addresses. The most affected wallet in this hack saw almost 900 BTC drained from their address. This amounts to more than $50 million. 

For the moment, the working theory is that this was a front-end exploit. However, affected users are vocal on social media, claiming that this might have been a rug-pull effort organized by BadgerDAO itself. Until the official investigation concludes, there will be no way of telling who is right and who is wrong. Unfortunately, the reality of the situation is that some users have seen their funds drained. 

BadgerDAO performance leading up to the hack

According to DappRadar data, Badger.Finance is the 25th most utilized Ethereum-based dapp in the past thirty days. The platform attracted upwards of 1000 unique active wallets, generating more than $15 million in volume. 

Notably, in the same time period, the platform recorded an adjusted total value locked (ATVL) of more than $428 million across its products. This means that hackers managed to steal more than a quarter of all assets locked on the BadgerDAO. 

The platform’s native  BADGER token has not had a very good run. While it saw its value peaking at around $38 on November 4th, the overall trend is negative as the token lost about 16% of its valuation in the past 30 days. 

The recent hack is undoubtedly going to affect this valuation even further. As smart contract interactions on the platform ceased for the course of the investigation, activity on BadgerDAO will cease, leading to potential further drops in valuation. 

DappRadar will continue monitoring BadgerDAO as the investigation continues to unfold. To learn the latest news from the DeFi space, follow DappRadar on Twitter, or join our Discord community. 

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