Hacks in Decentralized Finance (DeFi) tools and programs are gaining momentum daily.
A smart contract hosted on the Binance Smartchain known as “Bogged Finance” happens to be the latest DeFi hack victim. As a result, BogTool lost over $3 million and plummeted 98 percent of its holdings.
The DeFi BSC finance protocol fell victim to the cyber attack over the weekend. The Bogged team has explained that the hack was a “complex flash-loan-based attack” which are loans that do not require collateral immediately, provided that the liquidity is returned to the pool within a single transaction block.
The developers announced the attack shortly after it was discovered on Twitter while urging users on their bio to avoid buying the Bog Tokens until it is relaunched.
“We are aware of the flash loan attack against BOG and are as devastated as you. We believe we have prevented further theft against more of our liquidity,”
Reports have it that the developers were able to discover the infiltration and did their best to limit the hacker but the cybercriminal was able to do away with $3 million.
The Best Step for the Bogged Finance Team
To calm BOG token holders and investors, the team said that they are going to move the remaining liquidity on the platform to a fresh contract using an equal strategy the hacker employed. They also announced the intention to compensate users and holders in the platform.
“We’re hoping to burn approximately 7.5 million tokens in this migration, but the exact number may change. We will then airdrop the liquidity tokens back to their rightful owners, and then return $BOG legitimately owned and purchased to their owners,” the team said.
This isn’t the first attack of its kind in DeFi related systems. These attacks end up in losses in hundreds of thousands or even millions.