September 26, 2023

By design, Decentralized Finance (DeFi) is supposed to be impossible for hackers to penetrate, but hackers are a brilliant set of people who come up with solutions to any problem they have by just any means. The properly secured cryptocurrency world, unfortunately, has not been immune from their attacks. Recently, they have exploited a lapse in the smart contract code of an Ethereum bridge to carry out their attack.

A decentralized finance platform, Qubit Finance, is the most recent victim of such vicious hacks. The attack on Qubit Finance is a very high-profile theft as the hackers stole up to $80 million worth of cryptocurrencies during the attack that occurred on Thursday. It is the largest heist to have been carried out in 2022 thus far.

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Hack Acknowledged

The DeFi Company, Qubit Finance, has announced and acknowledged that its system was bridged and robbed. The announcement was made in a Medium publication that detailed the nature and time of the attack, placing it at 5:00 pm Eastern Time on the 27th of January. 

Qubit Finance has carved a niche for itself and gained a market reputation as a bridge company between different blockchain networks. This means that crypto deposits in one cryptocurrency can be converted to and expended in another. For instance, the company runs a bridged network between the Binance Smart Chain network and Ethereum.

A blockchain security and audit company, CertiK, has said that the hackers took advantage of a weak spot in Qubit’s codes that allowed them a deposit of 0 Eth and the consequent withdrawal of nearly $80 million in Binance coin.

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Analysts at CertiK stated the increasing relevance of bridges as the world steadily moves away from Ethereum domination to a truly multi-blockchain market. They said further that there is a real and continuous need to transfer crypto finds from one blockchain to another, and with that, the case of that kind of hack may increase. This brings up a need to develop processes that are foolproof and created in such ways that they are not possible to hack.

A Bounty on their Heads 

Meanwhile, Qubit Finance has appealed for negotiations with the hackers via a tweet. They asked for the negotiation between the hackers and the team at Quit in order to reduce the current loss on the Qubit Company and its users.

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The company also gave an offer of the maximum reward in its bounty program. A list on the Immunefi bounty platform indicates that it may be about $2500.

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