Lending Protocol Bonq Suffers $120M Loss in Smart Contract Hack

Lending protocol Bonq announced it was exposed to an oracle hack. The hacker gained access to around 110m $ALBT, increased the $ALBT price and minted large amounts of $BEUR. The $BEUR was then swapped and the price was decreased to almost zero, which triggered the liquidation of $ALBT troves. According to PeckShield, the estimated loss of the incident is around $120m.

AllianceBlock, issuer of $ABLT, said its smart contracts were breached or compromised, and the incident was isolated to the Bonq troves. Activities on AllianceBlock Bridge have been paused. AllianceBlock will take a snapshot just before the attack, mint new $ALBT, and airdrop the new tokens to affected users.

Bonq said other troves remain unaffected, and the protocol has been paused. The team is working on a solution that will allow users to withdraw all remaining collateral without repaying $BEUR in the troves.