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- Badger DAO recently revealed an application that runs on a cloud network was the element to the attack
- Out of $120M hacked, about $9M in the piece of the pie is recoverable.
Recently many organisations have witnessed an increased amount of cyber attacks on their blockchains & exchanges where malicious actions were pursued to cause damages & harm to the actors. At the latest BadgerDAO, one of the most prominent players in the world of DeFI revealed the intricacies behind the terrible attack that it had been through on Dec 2.
According to a blogpost from Badger, it revealed that it was a victim of a malicious phishing attack on dec 2 where the hacker injected a snippet into the code of cloudflare, an application that runs on Badger’s cloud network.
The hacker had used a compromised Application programming interface (API) to inject a malicious code that targeted a subset of customers. The API was created without the knowledge or authorization of the organisation’s engineers.
Speaking of Badger, it is an open source decentralized automated organisation (DAO) that encompasses & focuses on building digital infrastructure to simplify the use of Bitcoin across other blockchains like Ethereum.
The incident was first discovered by a Blockchain security firm Peckshield that eventually traced down the missing funds & data forensics experts chainalysis to look into the extent of damages caused. Apart from these organisations, Badger also cooperated with government officials in US & Canada, where the firm is active.
According to the instant investigations, the firm lost about 2100 Bitcoins & 151 Ethereum where it confirmed that the hack hit the firm $130 Million hard of which only $9 Million was recoverable since those funds had been transferred by the hacker but not yet withdrawn from their vaults.
Badger has since taken for the incident to not repeat itself again, it has patched Cloudflare & updated the accounts password and fixed the API. The incident had also resulted in the DAO’s share prices where it choked by 16 % in value. However the token redeemed throughout the week and is currently trading at $17.87
In November the US Federal Bureau of Investigation (FBI) acknowledged that it had seen a surge in such crimes & the decentralized nature of cryptocurrencies made it difficult to recover the victims’ money. It also mentioned that scammers had been pushing victims to use physical cryptocurrency ATMs & QR codes to complete payment transactions where it’s easier for them to operate and fraud customers.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
