The developers of the bZx decentralized lending protocol discovered a sudden drop in the volume of fixed assets.
Three hours after the start of the investigation, they were able to confirm a “duplication incident” affecting several iTokens.
In this regard, the possibility of depositing and withdrawing assets from lending was suspended. 1inch.exchange co-founder Anton Bukov discovered nine transactions with the iETH token, leading to a duplication of 101,778 iETH worth about 4.7 thousand ethers or $1.7 million.
The total damage was about $ 8 million. bZx stated that users’ assets are safe, there is no need to withdraw money from the platform. Coverage of losses was implemented using the protocol’s own insurance fund. As a result of the attack, the volume of assets in the bZx pools decreased by 70% to $6.3 million.