Litecoin Creator Charlie Lee Talks About bZX Hacks

Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic
  • A recent tweet posted by Charlie Lee, the creator of Litecoin, talked about the Defi (decentralized finance) shut down following a hack.
  • bZX has suspended borrowing and trading on the system and has put up a contract upgrade that would prevent such attacks from happening in the future.
  • The argument started after tokenized margin trading, and lending platform bZx was hacked recently.

A recent tweet posted by Charlie Lee, the creator of Litecoin, talked about the Defi (decentralized finance) shut down following a hack. In his tweet, he said that Defi is the “worst of both worlds.”

He also noted that most of Defi could be closed down by a centralized party, and they are just “decentralization theatre.” The worst thing about Defi, according to Lee, is that they need to be centralized if we need to recover it from a hack or an exploit.

However, another Twitter user Eric Wall, a developer, stated that such an argument is not correct. He said that the argument is “the cheap, boring fast-track to “[Crypto Twitter] wokeness” in the present scenario as “having an admin key is “not identical to a centralized exchange unless that admin key allows you to confiscate individual user balances.”

The argument started after tokenized margin trading, and lending platform bZx was hacked recently. During the previous week, when the hacks took place, the perpetrators managed to steal $350,000.

This amount is nearly 2% of the value of assets present on the platform. To execute this hack, the criminals exploited some of the Defi protocols and managed to steal the money by only incurring an $8 transaction fee.

As per DeFi Pulse, Total Value Locked (TVL), bZX which is the 7th largest DeFi platform on the Ethereum network, saw a USD 3.56 million drops on February 16 and a USD 1.9 million rises today so far, with an improvement of +12.9% in the past 24 hours. Currently, it has USD 16.7 million in TLV.

bZX have confirmed that they have been hacked. However, they have assured that the remaining funds are safe, and an accurate report regarding the loss would take some time to compile. They have also mentioned that this attack was not a result of Uniswap exploit.

Since the attack, bZX has suspended borrowing and trading on the system and has put up a contract upgrade that would prevent such attacks from happening in the future. They are going to release the compensation plans for the lenders soon.

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