Home News Badger DAO protocol suffers $120M exploit

Badger DAO protocol suffers $120M exploit

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The centralized cryptocurrency lending platform Celsius Network could lose more than $50 million as a result of the unauthorized withdrawal of funds from the Badger DAO decentralized finance (DeFi) protocol.

Thus, the project suffered a hack on December 2. PeckShield experts estimated the damage at more than $120 million. They also indicated that one of the addresses lost ~900 BTC (more than $50 million at the current exchange rate).

Reddit user explained his suspicions by saying that the affected address 0x53461e4fddcc1385f1256ae24ce3505be664f249 “interacted with other addresses that are known to belong to them [Celsius Network].”

The community should take “extra care” when interacting with DeFi platforms

One of them often interacts with an address marked on Etherscan as Celsius Network Wallet 5:

Celsius Network reported that user assets are safe.

“Celsius Network tracked down the hacker and passed this information to Badger to help with the investigation. We have also incorporated the lessons learned into the practice of preventive security and interaction with DeFi,” the statement said. The Celsius team also reminded the community to take “extra care” when interacting with DeFi platforms.

Celsius Network

Celsius Network

Earlier, the media reported that Chief Financial Officer of the Celsius NetworkYaron Shalem, and Moshe Hogeg, the founder of the ICO startup Sirin Labs; were among the seven people detained in Tel Aviv, Israel. Furthermore, Shalem worked as the financial director of Hogeg’s Singulariteam in 2014-2018 and joined the Celsius Network in 2021. In addition, the founder and CEO of the platform, Alex Mashinsky, was working as an advisor at Sirin Labs back in 2019.

In September, Texas State Securities Board (TSSB) has accused the Celsius Network cryptocurrency lending service of selling unregistered securities.

Recall that in November, the platform increased the number of funds raised; during the Series B investment round to $750 million. Therefore, the firm’s valuation reached $3.25 billion. Previously in October, the firm raised $400 million at a valuation of $3 billion. Investment company WestCap and Canada’s second-largest pension fund Caisse de dépôt et Placement du Québec (CDPQ) led the round.

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