Jump to
Main Blog Hype Balancer DEX website hacked with $238,000 in losses

Balancer DEX website hacked with $238,000 in losses

Pic 1

On September 19, the Balancer’s  decentralised exchange website was hacked due to a vulnerability in its frontend. The resulting damage is estimated at about $238,000. This is not the first attack on the project.

Balancer is a decentralised exchange launched on Ethereum in 2018. Currently, it is running on seven blockchains. As of today, the Total Value Locked (TVL) of this DEX is $703 million, with a trading volume exceeding $28 billion. The platform’s native token, BAL, is distributed as rewards to liquidity providers and allows participation in the protocol’s DAO.

In fact, Balancer functions similarly to Uniswap but has distinctive features. For example, liquidity pools can consist of up to eight tokens. Read more about this project here.
 

How the Balancer was hacked

This attack stemmed from a vulnerability in the frontend. Hackers managed to change the website's algorithm so that it appeared normal to users, but its true functionality had been compromised.

The term “frontend” refers to the part of the site that users directly interact with. The frontend is responsible for presenting content, layout, and user interface elements as opposed to the “backend”, which is the behind-the-scenes part of a website or application, responsible for processing data on the server side.

When connecting a wallet to the Balancer site, a window popped up, asking users to approve a smart contract to manage their funds. This procedure mimicked the normal interaction with Balancer pools. However, the smart contract belonged to the attacker, and once approved, it facilitated the unauthorised transfer of funds from users’ wallets to the hacker.

Read more about the interaction of users' wallets and smart contracts on decentralised exchanges in our article: User lost $24 million due to phishing attack.
 

According to PeckShield analysts, the hackers stole $238,000 of user assets. You can check this on their address.

 

A representative of Balancer's assured the community in Discord that all of the project's funds remained safe.

 

Previous attack on the project

At the end of August, Balancer faced another attack. Then, attackers managed to steal $2 million due to vulnerabilities in smart contracts.

Such cases of stealing funds from users' wallets have become more frequent lately. Unfortunately, you cannot be totally protected from all hacks in DeFi, but you can greatly reduce the risks by reading our article: Crypto scam: how to protect yourself.
 

You might also like:

User lost $24 million due to phishing attack

Billionaire Mark Cuban loses $870,000 in crypto

Understanding DeFi

Crypto scam: how to protect yourself

Maria Kachura
Maria Kachura

Visit her on Facebook or hit her up via Email.

0
Share this post
Similar articles
Best investment options for 2023
Markets
16 February, 2023
Best investment options for 2023
Let’s explore all the pros and cons of currencies, cryptocurrencies, stocks, real estate, and precious metals.
The difference between coin and token: understanding crypto assets
Learn
24 April, 2024
The difference between coin and token: understanding crypto assets
Discover the key differences between coins and tokens in the cryptocurrency ecosystem. Learn about their features, roles, and examples in this comprehensive guide.
NFT NYC 2022!🌐🦄
Events
20 June, 2022
NFT NYC 2022!🌐🦄
NFT NYC 2022.
AIBC Americas 2022
Events
8 June, 2022
AIBC Americas 2022
AIBC Americas 2022.
ETH NEW YORK 2022 🌐🦄
Events
24 June, 2022
ETH NEW YORK 2022 🌐🦄
ETH NEW YORK 2022.
Top 5 NFT games in 2024: the future of blockchain gaming
Learn
19 June, 2024
Top 5 NFT games in 2024: the future of blockchain gaming
In this guide, the itez team has gathered the freshest and most exciting information about the Play-to-Earn (P2E) segment and NFT games.