AllianceBlock targeted by $12M exploit

AllianceBlock is being attacked with a multi-million dollar exploit, according to February 1 Announced by the DeFi project.

That report shows that the attackers accessed 110 million ALBT tokens. It was worth about $12 million before the attack.

The price of ALBT dropped dramatically as it dropped from $0.11 to $0.04 in the hours after the attack. Further losses are expected.

AllianceBlock said the attackers breached personal Troves (smart contracts controlled by users and used to manage deposits) on its affiliated platform Bonq. AllianceBlock added that its own smart contract has not been compromised.

Unconfirmed reports suggestion The attackers sold Bonq’s BEUR token and earned at least $500,000 in stablecoins

AllianceBlock and Bonq are currently taking steps to restrict the movement of funds. The team is working to eliminate liquidity and has suspended activities on the Alliance Block Bridge. Both teams are trying to halt trading on their exchanges, but no major exchange has said it has stopped the attackers from cashing out the stolen funds.

As a solution, AllianceBlock plans to take a snapshot of the network before the attack, create a new ALBT token, and airdrop the token to users.

Addresses that continue to trade ALBT after the snapshot will not receive new tokens. It is unclear if this will convince the attackers and legitimate investors to hold onto the tokens or encourage them to cash out their assets even more quickly.

AllianceBlock plans to offer a variety of services that combine aspects of decentralized and traditional finance. This is a relatively small project in his DeFi space, with just $50 million total lock value (TVL) in recent years.