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Zabu Finance, a DeFi altcoin project built on the Avalanche Blockchain, has been hacked. The hacking reportedly caused a loss of $3.2 million. At the same time, this is considered the first major hack in the popular altcoin Avalanche (AVAX) ecosystem.

https://twitter. com/defiprime/status/1436875673193234437

The first significant loss in the AVAX ecosystem: Altcoin Zabu Finance has been hacked!

Notably, on September 12, the Twitter page DeFiPrime announced that the Zabu Finance project had lost $3.2 million in the first notable hack on the Avalanche (AVAX) Blockchain. The details of the lost value quoted by DeFiPrime are as follows:

Zabu Finance also quickly informed the community after the hack and made some clarifications. The project team said funds could be stolen from SPORE pools. At the same time, they also confirmed that they have not yet sold any ZABU.

https://twitter. com/zabufinance/status/1436844509644537856

Based on further research, Zabu has found that, according to the attacker’s Blockchain explorer, it includes 402.9 WETH, 23.157 WAVAX, 21.501 PNG, 106.848 AVE, 361.267 USDT, and 23.958.93 JOE, all 3 He was found to have stolen assets from a Spore token pool worth $2 million. He added that the attacker used the protocol’s “Transfer Tax” mechanism in minted tokens, causing the price to drop. The attacker manipulated a vulnerability in the contract used by Yield farms to distribute rewards.

The price of the Zabu token has dropped to near zero!

Zabu confirmed that the attacker could interact with Blockchain contracts and successfully extracted 4.5 billion Zabu tokens from the Zabu Farm Contract. Yield Yak, a DeFi broker hosted by Zabu and AVAX, advised investors shortly after the exploit to withdraw their assets or risk losing their assets to the attacker.

Zabu plans to return tokens to investors based on their pre- and post-hack balances | Source: Zabu

Zabu also burned the remaining 93.12 million Zabu tokens worth $360,000. This event caused the ZABU price to drop to zero (or close to it). A day ago, ZABU was still trading at $0.004, but after the attack, the price dropped to $0.0002, almost 100% below its value. However, at press time, altcoin project ZABU was trading at $0.00005256, up 35% again.

ZABU/USD 1-day chart | Source: TragView

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Michael Lewis

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