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Hacks reported on Acala stablecoin, BlueBenx, etc. Was at least one hack a HOAX?

By I-HODL | A Crypto Journey | 14 Aug 2022


So get this, friends, there's been reports of yet  another multimillion dollar hack on a high yield crypto lending platform, only this time, investors don't believe the story is true. Go figure. 

The affected company is the Brazilian crypto lender, BlueBenx,  which until yesterday's alleged hack, promised users up to 66% returns for investing cryptocurrencies, a promise it struggled to meet during the crypto winter. Following reports of a $32 million hack, however, all withdrawals have been halted, affecting approximately 22,000 users, and, according to some stories, most if not all of the company's employees have also been let go. Interesting.

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Some investors are having some difficulty swallowing this story, however, suggesting that it is a scam and an attempt to hide the company's inefficiencies and avoid liability.

Acala Stablecoin loses its peg

In other news, the Acala stablecoin (aUSD) on the Polkadot ecosystem has lost its peg to the US dollar and approximately 30% of its value following a malicious attack/ exploit by hackers.

The attack on Acala was detected and reported by blockchain security firm, PeckShield.

The team at Acala has since been able to identify the source of the hack and moved to pass an urgent vote to pause operations while investigating and mitigating the issue. 

In a statement to the public, the team advised: "We will report back as we return to normal network operation."

Well, this one's going to be interesting, right? Because if one can follow the on-chain activity of the hackers, I'm guessing there'd be very little they could do by way of spending the stolen funds, right? Not when the US Treasury Department is making no bones about coming for mixers and tumblers.

Druglike token tanks 90%

And on the issue of following on chain activity, yet another cryptocurrency has reportedly lost approximately 90% of its value following an alleged hack or dump, this one, a token founded by the former pharmaceutical executive once known and then later mocked as Pharma Bro, Martin Shkreli. And in case you haven't heard of Martin Shkreli before, he was a pharmaceutical executive who, according to reports, acquired a life saving drug and then jacked the price up 5,000%. He was subsequently banned for  life from participating in the pharmaceutical industry.

And yet, upon his release from prison earlier this year, he seemed to have waded right back in- this time under the guise of crypto innovation. His token, Martin Shkreli Inu, (someone lacked imagination here) was supposed to be part of a Web3 initiative, Druglike, which also included a decentralized cloud computing platform and exchange, launched to support early stage drug discovery.

And so, I guess it's little surprise that the hack or dump comes after two US attorney generals launched investigations into whether Shkreli is in violation of his lifetime ban by a federal judge.

Velodrome recovers $350,000 in stolen funds from team member

Meanwhile, over at trading and liquidity marketplace, Velodrome Finance, there was some good but bittersweet news yesterday when its team reported the recovery of $350,000 in stolen funds following an exploit earlier this month. The recovery was great news, however it came as a blow to the team and community to learn that the culprit behind the hack was none other than a trusted and prominent team member who went by the pseudonymous name, Gabagool. Talk about a mongoose in the henhouse, right?

In an update post on Twitter yesterday, the Velodrome team revealed that it had its relationship with Gabagool and was working with legal counsel to determine the best next steps.

They stated, "We recommend any individuals or teams who have existing relationships with Gabagool take these findings under advisement."

Gabagool also posted a lengthy apology in micro-font on Twitter. It hurt my eyes to read all of it, but here's a link to a screenshot if you're interested.

Of Hacks, Hoaxes and Inside Jobs

And so, my friends, to conclude, I'm gonna say this- while I cannot comment on the veracity of the claims by BlueBenx and its lawyers, if I were an  investor, I'd want a bit more accountability and proof than a vetted blanket statement issued by an attorney. That's just me.

I'm looking forward to another update on the Acala Network exploit. I'll share that with you when it becomes available.

I've shed no tears over Shkreli's exit from the space, if indeed this hack/ dump of his token signals an exit.

On the Velodrome issue, well, the argument is made that no user funds were affected, right? And thankfully, the Velodrome team acted swiftly and severed ties with the culpable coder. But here's the thing on that though. Where else does this coder act in the space? And what access does he or she have?  Reminds me a bit of the QuadrigaCX scenario when after the company imploded, one of the executives surfaced a few years later under a different name, right? And so, forgive me if I'm a bit queasy here. 

Anyways, tell me, my friends, what do you think of all of this? I'd love to hear your thoughts.

Well, I'm off again in search of other stories. Until we meet again, please remember to be safe. We'll chat soon.

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I-HODL
I-HODL

Your friendly, neighborhood crypto enthusiast.


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